OUTLINE OF PETROLEUM TRANSACTION PROCESS

• Buyer Consultant (BC) and Seller Consultant (SC) communicate to each other:
  • Buyer’s request for quote/availability
  • Seller’s ability to provide
• BC requests Seller’s procedures and SCO/FCO
• BC sends procedures and/or SCO/FCO to Buyer
• Buyer informs BC if Seller’s procedures are acceptable
• BC requests SCO/FCO on Seller’s Letterhead (if not provided above)
• BC sends SCO/FCO to Buyer
• Buyer conducts verification process of validity of offer/due diligence on Seller
• Buyer communicates directly with Seller to initiate contract proceedings
• Buyer/Seller exchange required documentation
• ICPO / Banking Coordinates / SPA / POP / POF / Commercial Invoice / SGS        

   
OUTLINE OF COMMODITIES TRANSACTION PROCESS

• Buyer Consultant (BC) and Seller Consultant (SC) communicate to each other as representative agents:
  • Buyer’s request for quote (RFQ)/specifications
  • Seller’s ability to provide
• BC requests Seller’s procedures and proposal in quotation format
• BC sends procedures and proposal to Buyer
• Buyer informs BC if Seller’s procedures and proposal are acceptable
  • Changes and revisions are exchanged between the parties
• BC requests Final Proposal on Seller’s Letterhead (if not provided above)
• BC sends Final Proposal to Buyer
• Buyer issues formal ICPO to initiate contract proceedings with Seller
• Buyer/Seller exchange required documentation including:
  • ICPO / Banking Coordinates / SPA / Commercial Invoice / Logistics Details

TERMINOLOGY

BC              Buyer Consultant
SC              Seller Consultant
SCO           Soft Corporate Offer
FCO           Full Corporate Offer
ICPO          Irrevocable Corporate Purchase Order
SPA           Sales Purchase Agreement
POP           Proof of Product
POF           Proof of Funds
SGS           Product Inspection and Testing Results
IMFPA        Irrevocable Master Fee Protection Agreement
RFQ           Request for Quote