Global Crude Supply

2013/2014 Crude Oil Procedures

2013-11-28T12:30:00.000+01:00

We at Global Crude Supply have mapped out a strategy in order for us to help secure more oil deals with companies and individual investors. There are lots of time wasters in the oil ad gas sector; some of which claim they are the mandate to the seller but in the real sense, there are chains of people in between. In order to secure a deal in the most convenient way, we are requesting that the potential buyers or mandate call or send a text message to 08037193840 to book a phone interview or alternatively send an email to globalcrudesupply@gmail.com. After this is done, we would book an appointment with the allocation holder

here in Nigeria. Please note that the buyer must come down to Nigeria or send a representative with complete company details or Authority to Sell as the case maybe. If you have to buy groceries, then you should go to the grocery store right! We have adopted this strategy to help weed unserious people whom we can no longer condone.

Serious persons would need to pay a consultation fee of $2000 before we proceed on this deal. Now the essence of doing this is to show a form of commitment that the seller is serious. We would not continue to burn our contacts any more as in previous experiences. No more flying documents; you pay us the consultation fee and we take you straight to the allocation holder here in Nigeria. We hold a meeting, seller shows proof of products and deal proceeds without long stories.

Please do not contact us if you cannot adhere to the terms indicated. We are very strict on our procedures, if you are a serious buyer, I am sure you understand the problems associated with this business. We want a physical meeting, we want to meet with the buyer or mandate in an open place or any location of your choice in Nigeria if you do not feel secure.

We hope to do business with you.

Regards,

Global Crude Supply

Standard TTO, CIF and TTT Procedures For 2012

2012-03-26T15:34:00.001+01:00

Please be informed that are working procedures have been re-adjusted for 2012. The essence of this is to create flexibility in transactions this year. In time past, we have had issues with transaction procedures deterring the successful closing of deals and we hope to curb this. Find below our working procuedures for TTO, CIF and TTT transactions respectively.

STANDARD TTO PROCEDURE

1.SELLER AND BUYER SIGN THE CONTRACT AGREEMENT WITH FULL BANKING DETAILS.

2. SELLER SENDS TERMINAL AUTHORITY TO SELL (ATS) AND ONRECEIPT OF THE ATS , BUYER SENDS MT103/23 CONDITIONAL PAYMENT TOSELLER’S BANK.

3. SELLER ON RECEIPT OF SWIFT MT103/23 CONDITIONAL PAYMENTISSUES BANK GUARANTEE FROM SELLER’S BANK WHICH MUST BE A PRIME BANK INEUROPE VIA MT 760 IN FAVOR OF THE BUYER.

4. BUYER ON RECEIPTAND CONFIRMATION OF SELLER’S BANKGUARANTEE TRANSFERS 85% OF THE BG VALUE IN CASH TO SELLER’S BANK ACCOUNT VIAMT103 SWIFT WIRE TRANSFER TO GUARANTEE BUYER’S FUNDS.

5. SELLER WITHIN 7DAYS OF RECEIPT OF BUYER’S FUNDS CHARTERS 2MILLION BARRELSVESSEL IN THE NAME OF THE BUYER AND HANDS OVER THE ORIGINAL COPY OF THE CHARTERPARTY AGREEMENT TO BUYER.

6. BUYER SENDS REPRESENTATIVES ON BOARD THE VESSEL TO HAVE ACQUAINTANCE WITH THE CAPTAIN.

7. SELLER LOADS VESSEL BY TRANSHIPMENT FROM THE LOADED VESSEL AND SENDS ATB TO BUYER’SINSPECTORS FOR Q&Q INSPECTION ON BOARD.

8. UPON COMPLETION OFQ&Q INSPECTION AND FULLDOCUMENTATION OF CARGO IN BUYER’S NAME,VESSEL SAILS TO BUYER’S DESIGNATED PORT OF DISCHARGE.

9. BUYER RETURNS SELLER’S BANK GUARANTEE ALONG WITH BALANCE OF PAYMENT WITHIN 20 DAYS AFTER DISCHARGING CARGO AT BUYER’S PORT OF DISCHARGE. COPY OFTHE DISCHARGE CERTIFICATE WILL BE SENT TO THE SELLER WITHIN 72HOURS OF DISCHARGING CARGO.THIS PROCEDURE CONTINUES MONTHLY FORTHE PERIOD OF THE CONTRACT BERTH CHARGES, DUTIESAND TAXES AT DISPORT

The Buyer shall be responsible for all duties and taxeslevied on cargo by the authorities of the country of discharge. Title shallpass from Seller to Buyer when Tanker Take over

TRANSACTION PROCEDURE : (CIF)Nominations, Shipment &Procedures

1. Buyer and Seller sign and seal this Contract includingbanking co-ordinates and exchange the signed copy by electronic mail. Theelectronic signed copy by both Parties is considered legally binding andenforceable. Buyer must return the signed SPA with the discharge port detailsand the approved ATB format to the seller.

2 Upon signing of the electronic copies of the spa anddeposited at each bank respectively seller and buyer shall send hard copies ofthe spa via courier to each other

3. Buyers bank writes to Seller‘s bank stating buyer’sreadiness to place instrument if Seller’s bank is ready to reply with a 2%performance bond Seller‘s bank signs letter and returns to seller’s bank.

4.Upon the receipt of the signed letter and confirmation ofbuyer's bank readiness to deal,sellers bank sends 2% PB to buyers bank, uponreceipt of 2% PB from sellers bank, buyers bank shall send by swift irrevocableopen letter of credit in sellers name to seller’s bank

5.Upon Seller‘s bank receipt of Irrevocable, Confirmed, BankComfort Letter (BCL) or MT799 or Irrevocable Bank Payment Undertaking (IBPU)from Buyers bank, shall within (5) banking days issue verifiable CPA,Q88 andProgrammed Provisional Lifting Details in Buyer’s name for one way voyage charter to Buyer’s port of destination. This LiftingRights (in buyer’s name) would be manifested on NNPC screen worldwide forbuyer’s verification and due diligence.

6. within seven (7)banking days of the above, NNPC furnish buyer / buyer’s bank with CPA & Q88in Buyers name:

7 Buyer confirms the vessel nomination, NNPC lifting Rightprogramming on NNPC Screen in Buyer's name

8. BUYER or BUYERS BANK sends to Seller SWIFT Confirmationfor Swift Verification by email.

9 SELLER Provides cargo documents to Buyer’s Bank forverification.

i. Clean–on–boardocean Bills of Lading

ii. Certificate of Quantity (SGS or equivalent)iii.Certificate of Analysis (optional)

iv. Certificate of Origin

v. Certificate ofQuantities

vi. Seller’s commercial invoice

vii. Vessel ullage report (optional)

viii. Receipt of samples (optional)

ix. Cargo Manifest

10. Captain Issues NOR / ETA to buyer’s shipping agents andthe buyer’s harbour master: shipping advice indicating, designated vessel name,loading port, estimated loading time, estimated time of departure, estimatedtime of arrival in destination port (full ETA).

11. Vessel(s) sails to Buyer’s discharge port. Upon arrivalat Buyer’s discharge port, Captain shall issue ATB to buyer’s supper cargo andinspectors inviting them to board the loaded vessel for Q and Q inspection.

12. Upon successful Q and Q including Dip Test BUYER pays for product by Wire Transfer /Swift MT-103 into the Seller’s account and Buyer’s / Seller’s agents’ commissions,within 72 hours of cargo discharge, based on out-turned barrel, transfer ofownership and presentation of relevant shipping documents at Buyer’s bankcounter.

NOTE BELOW:After the vessel has discharged its cargo atBuyer’s designated port outlined above , Buyer must make payment by KTT WireTransfer to Seller’s Bank Account for this transaction and to beneficiariesnamed in Master Fee Protection Agreement in the contract for fees. Such paymentmust be made’ within three (3) international banking days after productdelivery and discharge at Buyer’s nominated port of discharge againstpresentation of stated shipping documents (non-negotiable copies) at Buyer’sbank.

OUR STRONG POINTS.SELLER ONLY NEED A STRONG FINANCIALBACKING OF THE BUYER'SBANK AS POF VIA IBCL, OR MT799 TO GO ON SPENDING MONEY TONOMINATE A VESSEL IN BUYER'S NAME, PROGRAMME HER FOR LIFTING AND TURN THEM OVERTO THE BUYER FOR VERIFICATION BEFORE ESTABLISHING A LETTER OF CREDIT IN FAVOROF SELLER.

STANDARD TTT PROCEDURES.

1.The Buyer and Seller sign the Sales/ Purchase ContractAgreement with Banking co-ordinates.

2. Buyer’s bank writes Seller’s bank pre-advising that whenthe Buyer through his bank confirms Seller’s 2%PB,Buyer’s bank will issue andpost operative LC or operative BG in favour of Seller through his bank.

3.Seller issues 2% performance bond to buyer’s bank.

4.Buyer’s bank confirms 2%PB and issues operative LC oroperative BG to Seller’s bank.

5.Buyer forwards comprehensive vessel details which includesCPA,Q88 and Invoice of charter with ATL for seller’s attention andverification.

6. Seller upon verification of vessel details,loads vesselat the terminal and issues NOR/ETA to buyer’s vessel master.

7. Buyer’s inspectors and super cargo board seller’s vesselat the point of STS to conduct QnQ analysis on the loaded vessel.

8. Buyer and Seller’s vessel long side for transhipmentafter satisfactory Q n Q analysis.

9. Buyer pays for cargo and all agents fee.

10. Vessel sails to buyers port of discharge

DOCUMENTS:

1. Bill of lading with copies

2.Commercial Invoices

3. Certificate of Origin

4. Certificate of quality and quantity (issued at the portdischarge)

5. Cargo Manifest

6.Certificate of insurance

7. SGS report after discharge

We hope to do business with you.

Email: globalcrudesupply@gmail.com

Shell Declares Force Majeure On Bonny Oil

2011-10-12T07:22:00.002+01:00

Shell Petroleum Development Company (SPDC), on Monday, declared force majeure on its Nigerian Bonny Light crude oil loadings for June and July due to production cutbacks caused by leaks and fires on its Trans-Niger Pipeline (TNP).

This was made know by the Vice President for Health and Safety for Shell in sub-Saharan Africa, Babs Omotowa, who said the leaks caused by saboteurs had been repaired and production resumed on June 12, but the shutdown of the lines had affected loading schedules at its Bonny export terminal.

“The leaks and fires show a worrying trend not only on the TNP but also on our facilities elsewhere and sadly, the trend are continuing unabated,” he said. “At the end of April, we recorded more than 35 sabotage spills. SPDC is continuing to upgrade facilities but no matter how much we improve our performance, until the activities of oil thieves and illegal refiners are brought to an end, the vast majority of oil spills in the Niger Delta will continue.”

The force majeure, which frees the company from contractual deliveries due to actions beyond its control, took effect at noon on Monday and Shell said it would advise customers of a new schedule.

Bonny is one of Nigeria's top oil streams and is popular with refiners in Europe and the United States. Previous disruptions to Bonny supplies have boosted world oil prices.

Crude oil theft, known as bunkering, is rampant in the Niger Delta with some estimates putting the amount stolen as high as 100,000 barrels per day (bpd) at its peak, much of it smuggled inside otherwise legitimate shipments.

Article By: Chris Onyeose

Global Crude Supply Threatened by Libyan Crises

2011-03-01T14:25:00.002+01:00

Libyan crude oil production output may drop by as much as a quarter as Africa's third largest producer faces daunting civil unrest.

With President Muammar Gaddafi still defiant despite public protest against his 41-year rule, there are fears
that the international oil market and indeed, the global economy, could be the worse for it in the days ahead.

Crude oil prices futures rose to their highest in nearly two and a half years on Wednesday as Libya's violent uprising threatened to disrupt oil shipments. The commodity surged to $96.39 a barrel in New York, and to $108.42 in London.

Latest figures show how much the Libyan crisis is affecting the global economy. The country produces 1.6 million barrels per day (bpd) of high-quality oil, or about 1.9 per cent of world output, while Libyan reserves of 44.3 billion barrels are the continent's largest, according to BP Plc's Statistical Review of World Energy.

1.3 million bpd is exported, mainly to Europe. Austria's OMV said on Wednesday it might be heading for a full production shutdown in Libya. Total, Repsol, Eni and BASF have also said they are either slowing or stopping output. Other oil companies, including Royal Dutch Shell and Germany's Wintershall, have started withdrawing their workers.

Beneficial for Nigeria

However, there is optimism that the spike in oil prices will be beneficial to Nigeria, the world's seventh largest producer. With a 2.3 million bpd output, experts say this is a good time for the country to build up her foreign reserves.

"It is worth noting that elevated Bonny Light prices could also help re-build the excess crude account and/or launch the planned sovereign wealth fund, although this would be conditional on the authorities' willingness to effectively resume the implementation of the oil fiscal rule and save oil-related proceeds for the rainy day," said Samir Gadio, emerging market strategist at Standard Bank.

According to him, this would improve the ability of the Central Bank of Nigeria to meet demand for dollars at the official foreign exchange market. He nonetheless said as an import dependent country, Nigeria should prepare for the downside: "The downside risk is, however, that higher energy prices could have an impact on imported inflation."

The series of uprising sweeping through the Middle East in the last few weeks has heightened fears about the possible slip into another round of global economic crisis.

Tunisia, Egypt, and now Bahrain, Yemen, and Libya have come under unprecedented civilian protests against the authoritarian rule that were hitherto in place. The fear is that this could spread to larger producers like Saudi Arabia. For a region which accounts substantially for global crude oil supply, major economies have cause for worry.

Intense volatility

Brazilian state oil company, Petrobras, has said it will not change its gasoline prices in Brazil despite volatility in global oil prices caused by Middle East turmoil, its president was quoted as saying by Brazilian media on Wednesday.

"We won't pass on the volatility of international prices to Brazil," Sergio Gabrielli told reporters on Tuesday, according to the Valor Economico newspaper, adding he expected months of "intense volatility" in commodity prices, according to Reuters.

Meanwhile, in America, economists are warning that the rising cost of crude could dent consumer confidence and stifle economic recovery. Experts fear that a rise in petrol prices could force businesses and consumers to spend less on other things, slowing both the economy and the pace of hiring.

Although Saudi Arabia has promised to make good any shortfall in global oil supplies, the concern is how much calm this would achieve in an already volatile oil market.

Crude Oil Business - How to Profile Buyers

2011-02-28T13:16:00.002+01:00

If you would have to close a deal in the Oil and Gas business, then you must strive to apply a professional approach. As a seller, having a commodity without having anybody to buy is regarded as a waste. The essence of business is buying, selling and making profits. There are so
many people out there trying to broker a deal in this industry selling crude oil but they are face with myriad of problems. The reason owing to the fact that the buyer/seller mandate or facilitators are not doing things the way they ought to be done. Most times, the actual sellers already have their buyers and most buyers also have their sellers; these buyers could seek for products else where when there is a great need for the crude oil product and their supplier cannot supply the required quantity. The people who do the scouting for either buyer/seller of crude oil product are mostly the mandates and facilitators. Most times the business becomes frustrating for them because they do not go about it the right way.

In order for a seller agent to find a suitable buyer, I would advice for him to do a little profiling. If you stand as a seller agent and looking for a genuine buyer, you should go through directories of refineries. Most of these directories list phone numbers, contact address and in some cases email addresses. If you have a strong relationship with the seller, you can request for a letter of mandate ship from him. I suggest this for professionalism sake; it gives the buyer more comfort working with you. Now that you have obtained this, you can take the following steps:

Place a phone call to the refinery/buyer: This first step is imperative because most people would prefer a phone communication so they can really feel who they are relating with. Your sole aim of making this call is to introduce yourself and your company (you should have a company name), tell the buyer what you have to offer and how you intend to deliver, the time it would take to deliver. If the buyer indicates interest, you can now request for his email address if you don't have it.

Do an email to the buyer: After having made the phone call, you can now send an email to him with your working procedure together with you letter of mandate ship and company details. The mail should reference the call that was placed to him and the exact time and date. You can also re-introduce yourself one more time. If after going through the procedure and he is comfortable with it, you can now proceed with the other part of the deal as indicated in the procedure.

Alternatively, you can also write to companies buying crude oil. The letter should be an introduction letter written with your company letter headed paper. If you are the mandate, you can also include your letter of mandate ship and your procedure. Please make sure that this letter is packaged in a professional manner with your contact details included in it. You can send to as many companies as you can and wait to get your response. If you don't get a response within a period of time, you can call in to ask if they got your letter and if they are interested in doing business with you.

Professionalism should be the keyword in crude oil business; if you achieve this then be sure to expect a positive response after your profiling.

To your success.

Amnesty Deal - Jonathan, Industry Chiefs Rekindle

2011-02-26T16:05:00.001+01:00

Nigeria's crude oil export increased by 80,000 barrels per day to 2.080 million barrels per day in January, according to figures compiled by Platts Energy group on export from members of Organization of Petroleum Exporting Countries (OPEC).

The figure is 120, 000 barrels per day dropped by the Minister of Petroleum Resources, Dr. Rilwan Lukman, who posted the nation's January export at 2.2 million barrels per day.

Confirmation of the actual export figures as against output figures is expected from the Central bank of Nigeria to measure the actual revenue performance of the petroleum industry at the opening of the year.

According to the data of exports from OPEC countries to international petroleum exchanges collated from lifting details of trackers of sea going vessels, Nigeria's output in January topped 80, 000 barels per day on her December figure of 2.0 million barrels per day (mbd).

The figure would now amount to 376,000 barrels per day above the country's quota in the exporters' group which ahs been battling price crash in the export value of the commodity which supports the annual fiscal budgets and expenditure patterns of member states.

According to the Platts, Nigeria's export figures have continued to rise from 1.85 mbd in September, 2009 to 1.87 mbd in October and 1.9 mbd in November. The country rounded off 2009 with her export recovering from the lows of 1.2 mbd earlier in 2009 to 2.0 mbd in December.

Petroleum Minister, Dr. Rilwanu Lukman said in June 2009 that the nation's oil production had been cut to about 1.5 million b/d, less than half of its capacity, confirming Platts estimates.

Nigeria's oil revenues were correspondingly cut by half in the first quarter of 2009 compared to the previous quarter, official statistics showed, largely due to security issues in the oil-producing Niger Delta.

Sales in the first quarter of 2009 earned N735.4 billion ($4.9 billion), sharply down from the previous quarter's $9.86 billion, according to figures released by the National Bureau of Statistics.

"Crude oil exports stood at N735.4 billion ($4.9 billion), a sharp decrease of N734.2 billion or 99.8 percent over that of fourth quarter 2008," the bureau said.

The total trade figure for the first quarter of 2009 was N1.975 trillion, indicating a drop of N 572.5 billion or 29 percent over the fourth quarter of 2008, it said.

Officials in the petroleum ministry and its parastatals attribute the country's rapid recovery of crude production to the amnesty deal between the federal government and the militants whose aggression to the industry raise security premium that reduced output.

But the amnesty deal nearly ran aground following the political intrigues that trailed the health of the president and the applications of constitutional provisions to close the power vacuum created by the protracted absence of the president and the error of not handing over state functions to his vice.

Whereas the president's absence stalled implementation of the amnesty deal with militants, the gunmen were also wary of the seeming scheme by the northern political cliques in the federal cabinet to diminish the office of the vice president who hails from the Niger Delta.

The impasse over the status of the vice president in the prevailing political situation is believed to be the reason for the militants to call off their unilateral ceasefire against government's oil interests in the Niger Delta, raising concerns in the industry over return of downturn due to security tension.

The ceasefire declared by the main militant group, MEND, in October 2009, came to an end according to a statement from the Movement for the Emancipation of the Niger Delta (MEND).

The statement, issued on January 30, warned oil companies in the Niger Delta to cease and desist all operations or face grave repercussions.

The statement read: "The Movement for the Emancipation of the Niger Delta warns all oil companies to halt operations as any operational installation attacked will be burnt to the ground."

Giving the reasoning behind the end of the ceasefire MEND spokesman, Jomo Gbomo said: "After careful consideration and extensive consultation, the Movement for the Emancipation of the Niger Delta (MEND) today, Saturday, January 30, 2010, has decided to call off a unilateral ceasefire ordered on Sunday, October 25, 2009."

On Monday, February 1, Shell was forced to shut three oil flow stations in the Niger Delta after company spokesperson Precious Okolobo said in an emailed statement that a pipeline was vandalized.

The leak occurred on January 30 on the Trans-Ramos pipeline although no group including MEND claimed responsibility. However, the next day the military Joint Task Force (JTF) in collaboration with Shell, denied the attack on the Shell Trans-Ramos pipeline was an act of sabotage, claiming it was an attempt to steal crude oil.

But MEND contended that that the pipeline incident was neither attributable to its members nor to crude oil thieves. MEND had in the past admitted it stole crude oil justifiably to fund its liberation of the host communities.

Spokesman, Gbomo Jomo, issued another statement that said, "No bunkerer breaches pipelines with explosives as was done in this attack."

The MEND spokesman continued his warning by saying, "MEND hereby promises to re-visit the Trans-Ramos pipeline which we attacked in June last year after it has been repaired, as well as other oil facilities around the Niger Delta in the weeks to come."

However, all issues relating to implementation of the keys terms of the celebrated amnesty deal that got trapped in the uncertainty over the health of President Umaru Yar'Adua whose protracted overseas medical treatment created power vacuum, and the political intrigues over the role of his vice in the circumstances, were recently resolved with ratification of the status of the Vice President Goodluck Jonathan as the Acting President.

Last week, Acting President Goodluck Jonathan summoned several executives from foreign oil companies to meet with top officials in an initial effort to breathe life into the nation's ailing energy sector just after assuming the duties.

According to Presidential Adviser on Petroleum Resources, Dr. Emmanuel Egbogah, executives from Chevron, ExxonMobil, and Shell, among other companies, attended the meeting with government officials.

Focal points of the talks were the activities militants who have sabotaged pipelines, disrupting production and oil prices.

Industry analysts and officials expressed the belief that Acting President Jonathan's ethnic background could help him work with militants in consolidating the peace proces.

Dr. Egbogah said: "There's concern that the militants are getting irritated and worried."

Under the peace program that began last summer, the Nigerian government has essentially paid militants to lay down their arms.

However, the delta's main militant group recently called off its cease fire because of its unhappiness over how little money the government is putting into the region.

Group CEO of Oando PLc, Mr. Wale Tinubu, Nigeria's biggest independent energy company by revenue and oil production, said Mr. Jonathan's ascent to power could spur the reconciliation process between the government and militants.

"Jonathan will make a renewed push towards peace in the Delta and I do believe that will reassure investors in the oil industry," said Mr. Tinubu, who was not at the government meeting.

Nigeria has long been a key crude supplier to the U.S. and Europe, but its oil-pumping capacity has flattened out over the past five years or so.

Output from new and lucrative Nigerian offshore oil projects has been offset by regular militant attacks -- and by natural decline rates -- at onshore locations.

U.K. consultants Wood Mackenzie estimate that Nigeria's actual oil production could hit three million barrels a day by 2016, from just over two million a day currently, representing a sharp revision downward from projections a few years ago.

"Nigeria's reserves are probably still there but the growth in output is a lot slower" because of lagging investment and fewer barrels being generated from aging fields, said Stewart Williams, a senior Africa energy analyst at Wood Mackenzie.

Foreign executives have been concerned not only by the militant attacks, but also by pending petroleum-industry legislation.

The legislation is likely to result in higher taxes and reduced profits for oil companies, but it has stalled as Nigeria's president was out of the country.

Mr. Yar'Adua traveled to Saudi Arabia in November for medical treatment for a heart condition and hasn't been seen in public since.

Mr. Williams of Wood Mackenzie says if long-delayed oil legislation were to be passed, and approved with Mr. Jonathan's backing, such a move could face questions.

Political opponents, for instance, may challenge its legality, since Mr. Jonathan is acting simply as interim president.

Mr. Jonathan has tried to make his presence felt quickly.

Even before taking up his new post, Mr. Jonathan wrote a letter to the country's oil minister, asking him to halt all sales of oil blocks until the political vacuum had been addressed.

Then, hours after giving a national television address accepting his new position, Mr. Jonathan demoted the country's attorney general, Michael Aondoakaa, to minister of special duties.

Some lawmakers have questioned Mr. Jonathan's use of executive power.

Nigeria's Revenue Jump as oil hits $119.79

2011-02-26T15:54:00.001+01:00

Nigeria's oil revenue is increasing exponentially as crude oil prices surged on Thursday to $119.79 a barrel. This price is %54.79 higher than the country's 2011 budget benchamrk for $65.

Oil prices have been increasing consistently in the oast tow weeks due to the political turmoil in oil producing nations in Africa and the Middle east.

Prices surged to a two-and-half year high as the revolt in Libya choked exports, the eased as Saudi Arabia assured Europen refiners.

According to a report by Reuters, the Brent crude price jumped by 7.5 percent as the revolt cut off up to three quarters of Libya's 1.6 million barrles per day production, according to the Italian oil company, ENI, a top player in Libya's oil sector.

Brent crude traded up by $3.04 to $114.29 a barrel, after hitting $119.79 earlier, the highest level since August 2008. United states crude price rose by $1.26 to $99.36 a barrel, after touching $103.41, the highest since September, 2009.

The stronger gains in the Brent pushed its premium to United states oil, which has been weighed down by high inventories at the Cushing, Oklahoma delivery point for the New York Mercantile Exchange.

Crude Oil

2011-02-24T15:39:00.000+01:00

Classifications of Crude Oil

2011-02-23T15:40:00.000+01:00

Crude oil otherwise known as petroleum (from Greek: petra (rock) + Latin: oleum (oil)) is a composition of hydrocarbons (chemicals composed solely of hydrogen and carbon in various molecular arrangements) and other compounds which is usually brown or black in color.

It is extracted from the earth, formed naturally from the fossil of animals and plants. The viscosity and relative weight of crude oil varies and it can exist in either liquid or solid state.
The different types of crude oil are classified based on the American Petroleum Gravity (API) gravity and viscosity. The properties may vary in terms of proportion of hydrocarbon elements, sulfur content etc as it is extracted from different geographical locations all over the world.

Light crude oil is defined as having an API gravity higher than 31.1 °API
Medium oil is defined as having an API gravity between 22.3 °API and 31.1 °API
Heavy oil is defined as having an API gravity below 22.3 °API.

Classifications are made based on the sulfur content as well. Crude oil with low content of sulfur means 'sweet' and the presence of high content sulfur is known as 'sour'.

One of the largest and major Classifications of Crude oil is Brent Blend, which is found in the North Sea. With an API gravity of 38.3 degrees and 0.37% of sulfur, this blend of crude oil comes from 15 various oil fields in the North Sea.

West Texas Intermediate (WTI) otherwise known as Texas Light Sweet, OPEC Reference Basket (ORB) and Dubai Crude are other major benchmarks or references. The deposits for West Texas Intermediate are found in Texas and Mexico whereas for OPEC Reference Basket oil is sourced from Bonny light (Nigeria), Arab light (Saudi Arabia), Basra light (Iraq), Saharan blend (Algeria) and Minas (Indonesia). Although, Brent blend is graded as a light crude oil, it is not as light as WTI.

Russian Export Blend, the Russian benchmark crude, is a mixture of several crude grades used domestically or sent for export. Russian Export Blend is a medium, sour crude oil with an API gravity of approximately 32 and a sulfur content of approximately 1.2%. Its spot price is reported at Augusta, Italy, and Rotterdam, the Netherlands, which act as the two primary delivery points.

Light, sweet crude is more expensive than heavier, sourer crude because it requires less processing and produces a slate of products with a greater percentage of value-added products, such as gasoline, diesel, and aviation fuel. Heavier, sourer crude typically sells at a discount to lighter, sweeter grades because it produces a greater percentage of lower value-added products with simple distillation and requires additional processing to produce lighter products

Source: International Marine Consultancy

The Truth About Nigerian Crude Oil Transactions

2011-02-03T15:38:00.000+01:00

We have noticed with regret the unlimited sales purchase agreements all over the internet that are being released by criminals in the Nigerian society claiming to have non existent ship loads of crude oil. If you do not know what is happening I will tell you now.

Nigeria produces 2 million barrels of crude oil daily according to OPEC figures. That’s 60 million barrels a month. Under joint partnership with the JV partners Shell, Chevron, Texaco, Exxonmobil and others. Roughly 40% of this crude is given to the Nigerian government to sell. The rest is sold by the JV partners to their partners abroad.

40% of 2,000,000 is 800,000 barrels a day.
Multiply this by 30 days and you get 24 million barrels a month that the government has to sell. This 24 million barrels are given to cronies of the Yar Adua administration or governments of other countries. The cronies are those who have helped him in his political campaign or in running the government. They are given these allocations by only one body in Nigeria and that’s the Crude Oil Marketing Department of the NNPC. If you are given an allocation you are subsequently given a letter from this body
The question to ask now is how come Nigeria produces 2 million barrels a day and there are Sales Purchase Agreements for over 100 million barrels of crude oil per day all over the internet. I will reveal the secret to you now. 99% of these Sales Purchase agreements are all fake. The peddlers of these agreements are only looking for one thing from international buyers and that thing is a Letter of credit covering 2 million barrels of crude oil which is roughly 140 million dollars.

If a buyer issues a letter of credit for 140 million dollars to any Nigerian, he must first have the money in his account abroad before his bankers will agree to issue this letter. Once he issues this letter, his funds are trapped in that account until the transaction is completed or cancelled.

The Letter of credit is issued to the sellers bank in Nigeria. It can only be cancelled with permission of the sellers bank and the consent of the seller. If the buyer wants to cancel this transaction, he has to travel to Nigeria and find both the seller and his bankers. Without this he cannot cancel his Letter of credit. His funds are tied in his account abroad based on the LC he approved.

Now here is the deal which the so called sellers use to make their money. When the buyer finally finds the seller and his bankers in Nigeria, the seller will not give his consent for the Letter of credit to be cancelled since he has or he claims he has already paid millions to lift the crude oil and has been working on it for months. They now force the buyer to pay a damages fee of at least $200,000 or $100,000 before he can be allowed to cancel the letter of credit. This is why these so called sellers are incapable of putting a 2% performance bond down even after months of signing the contract and they always seek to remove this from the contract and prefer so called tanker to tanker transfers and not CIF transactions.

This money is very big for any Nigerian and they get away with it because to the buyer, 100,000 dollars or 200,000 dollars is easier to give away than a complete loss of 140 million dollars tied up in a bank in the USA or Europe which is normally on credit from the bank and is running interests. He needs his money free and clear from his bankers but cant get it. So he succumbs to this cheap blackmail just to cancel his Letter of credit and get his bulk money abroad. He leaves Nigeria very bitter with a vow never to do any business with any Nigerian again.

This is why I have always told you all that if they cant show their letter of allocation from NNPC crude oil marketing department, they have no crude. So stop listening to all the NAPIMS and BONNY terminal letters. They have no crude oil. Even if 100 agents sign it for commissions, they have no crude oil. They are only using desperate ignorant Nigerians who call themselves agents but dont know the business to make money at the back. There is no money coming to you as an agent if you are in a transaction that you have not seen the letter of allocation from NNPC crude oil marketing department.

Even if they add so called off Opec quotas and proof of products that you can get from anywhere, they have no crude oil. The simple thing you need to know if someone has crude oil is a letter of allocation from NNPC Crude Oil marketing department. Thats all you need and thats all you should require from any seller who says he has crude oil.

If you do not do this, they will only waste your time on a non existent 2 million barrels and give you long nights of sleeplessness hoping for a commission that does not exist. You do all the work as an agent and then they corner the buyer in Nigeria, collect a litlle big money at the back and dump you without even thinking twice about all your effort.

That’s why I say, don’t get yourself in fraud that you know nothing of because of greed.

If they cannot show you their allocation letter.

If you are dealing with a seller and he cannot show you his allocation letter from NNPC crude oil marketing department and no other agency, he has no crude. Bonny terminal does not give allocation letters. Its job is to supply people with crude oil on presentation of their allocation letters from NNPC crude oil marketing department and no other department of the NNPC handles this.

Claims of contacts in bonny with the head of bonny terminal Mr Fubara are all lies. Don’t let Nigerian fake sellers waste your precious time. Insist for a proof of allocation from NNPC crude oil marketing department. No other agency in Nigeria can give allocation except this office. Napims/Bonny terminal etc letters are all fake. Insist on a genuine letter from NNPC Crude Oil Marketing Department.

Article by Chime Joseph

Black Gold Income

2010-11-16T11:13:00.001+01:00

Black gold has been known to mean more than one thing depending on your understanding and perception. Black gold to some people might mean coffee; while to some others it could mean something else. Black gold in this context refers to crude oil. Crude oil is the base of all petroleum products i.e. diesel also known as AGO ( Automated Gas Oil), fuel also known as premium motor spirit, kerosene also known as DPK, butane also known as cooking gas. All these products are extracted from the centrifugation of the black gold.

Petroleum products are required in large quantities on a daily basis owing to the fact that there are trillions of car owners worldwide; these car owners require the assistance of black gold products to keep their vehicles running. You would also observe that there are industries worldwide that utilize power generating sets to enhance production performance. These power generating set also require petroleum products to successfully ignite their engines. The use of black gold products is imperative to every society and hence the need for countries to seek this product.

The black gold gives you an opportunity as an individual or a company to earn a recurring income as a middleman. You do not need any financial commitment in order to tap into this source of income. All you need is knowledge of how the business runs your mobile phone and internet. To be at the top of your game in this business, it is imperative that you understand all the trading terms. Don’t be nervous! One step at a time and you will get there. It is not rocket science, people are doing it and so can you. You can make as much as you want to; it all depends on you.

The black gold is making people rich working from the comfort of their homes. In most cases, there is no physical contact between the parties involved. It is advisable to schedule a conference call most times so as to communicate with all parties. If you happen to be in the same country, you can meet physically for once and then every other correspondence can be via email, skype or phone call. This is how you make money from black gold.

1. Have an indebt knowledge of how the black gold business works

2. Contact a genuine seller

3. Get procedures from seller

4. Contact a genuine buyer

5. Send seller procedure to buyer

6. After buyer agrees negotiate your commission

7. Send SPA( Sales and Purchase Agreement) to buyer

8. Buyer signs and returns

9. Follow the rest of the procedure

10. Pays for product and commission to the agents

The above listed is a brief outline of the steps involved in earning black gold income. If you can achieve these then you are on your way to earning a recurring income. Please remember that you cannot sell a product you are not conversant with. The first step should not be neglected. I have taken my time to write a manual that would help you understand the basics of this business. It is hosted on lulu.

You can check it out by going to www.lulu.com/spotlight/victordominic

How to Earn $50,000 - $100,000 as a Crude Oil Facilitator

2010-09-25T20:32:00.000+01:00

Crude Oil business has the potential of making a recurring income for you if you play your card well. As a facilitator in this Business, you stand a chance of generating $50,000 - $200,000 as sales commission.

Facilitators are termed the 'husslers' of this business because they do the sourcing of both buyers and sellers in most cases. A facilitator in crude oil business is a mediator between buyer and seller of crude oil commodity. A facilitator could either be an individual or a company as the case may be, he is paid after the transaction has been sealed. The earning potential of the facilitator can be huge depending on the negotiation during the process. Below is a low down of how much a crude oil facilitator can earn:

Assumption is that the minimum quantity being purchased is 2 million barrels:

For a commission of $0.05

$0.05 * 2,000,000 = $100,000

$0.10 * 2,000,000 = $200,000

$0.20 * 2,000,000 = $400,000

$0.30 * 2,000,000 = $600,000

$0.40 * 2,000,000 = $800,000

$0.50 * 2,000,000 = $1,000,000

These figures may vary depending on negotiations. Though being a facilitator in crude oil business could be very frustrating when things are not going on as planned but it takes persistence and consistence to seal a transaction in Crude Oil Business.

How to Find Verifiable Crude Oil Sellers

2010-09-24T18:36:00.001+01:00

Crude oil is becoming hard to find and getting a genuine supplier is even much more harder. With the crude oil business being one of the world's largest and easily one of the most profitable, there are a whole host of companies and agents in the fray posing as sellers of this black substance. That said, there are various other factors at play, which determine the extent to which companies or agents can go to be in the supply business.

Firstly, there are several kinds of crude oil ranging from: Brent crude, Bonny Light, Forcados Crude, Saudi Light Crude, etc. The specification of these products are relatively different and their demand and prices also varies. Amongst these crude oil, the one in higher demand is the bonny light crude oil which is said to have a higher API gravity (low specific gravity) and it is mostly produced in the Niger Delta basin of Nigeria. The very low sulfur content of Bonny Light crude makes it a highly desired grade for its low corrosiveness to refinery infrastructure and the lower environmental impact of its byproducts in refinery effluent. However, a few countries have been said to have this crude oil in abundance, these countries are Nigeria, Russia, Saudi Arabia, Kuwait, Iran, USA, etc. Some of these countries have a very large demand in their own country so buying from them might pose some difficulty. Nigeria is still known to be the most flexible country with regards to buying crude oil if you are fortunate to find into genuine sellers.

Finding a verifiable seller in the Nigerian market is very simple if you follow the steps. Firstly, you must decide on whom to buy from since there are several sellers in the Nigerian market. If you choose to buy from the government that means you'll be dealing with the Nigerian National Petroleum Corporation (NNPC). Buying from this corporation is safe but you'll be faced with a whole lot of challenges like meeting up with their policies which are extremely strict. You could also choose to buy from private sellers like Shell, AP and Chevron, but buying from independent sellers that already have bulk allocation from the Nigerian National Petroleum Corporation is usually the best.

Having said, the big question now is how to get this verifiable sellers?. Although, in the parallel market of Oil industry it is the buyer who always should come clean first and disclose its profile, want and ability and should also be willing to provide documents and most importantly exercise cautious. There is a lot of fake sellers out there, and quite simply - the watchword is due-diligence. Without wishing to appear disaparaging, anyone who enters such markets without an in-depth knowledge of the dynamics and mechanics of the market itself, with no experience, is asking for trouble. Due diligence is the only sure way of making sure - how well do you really know this counterparty? In a Due Diligence you need to know if the "seller" is a duly registered company expecially in some countries but dealing locally, or having someone to correspond with the sellers in the country you are buying the product from is very important.

Furthermore, you should be careful about sellers claiming they are able to supply extremely large quantity of crude oil as most of the independent oil sellers have a limited amount they can supply per month. Another note is that there is no fix pricing of crude oil, I have seen many so called sellers advertising selling crude oil at fix pricing or claiming they can supply at a certain too-good-to be true prices. You should be wary of such people and no genuine seller requires you to commit any amount of money prior to completion of the deal or will require you to pay any upfront whatsoever!

(ArticlesBase SC #3247993)

Oil and Gas Terms

2010-07-23T12:32:00.000+01:00

The Oil and Gas business is no doubt one of the biggest money generating business in the whole world. I am sure you are aware of the fact that daily consumption of fuel products is increasing and days go by and as such there is a huge demand of oil products all over the world. The Oil and Gas sector presents an avenue for both investors and marketers to make huge sums of money on a daily or monthly basis. There are certain terms associated with this business; it is imperative at this point that you have an understanding of these Oil and gas terms.

1. SPA- Sales and Purchase Agreement

The SPA serves as a legal document which is presented by the seller of a supposed crude oil commodity through the seller’s agent to the buyer or his or her agent or mandate for the buyer to sign, seal and return back to the seller. It is a legal document binding on both parties once signed and incurs a penalty if one party defaults in fulfilling his side of the purchase contract. Most likely it has the terms agreed by both seller and buyer present in it. A copy of this document is given to the banks of both parties as the deal proceeds while copies are also kept for security reasons. Since the SPA is a legal document, care should be taken before it is signed since many people defraud others with it. It is often times presented in soft copy and is printed out and filled by the other party.

Scams Associated with SPA

It is a well known fact that people tend to perpetuate fraud through legitimate means of making money; especially when it is internet related and hence reducing trust and making it difficult to seal a deal in this industry. Buyers must be very careful with the issue of signing of an SPA. Once an agreement is reached by some parties and the SPA has been duly signed, some fraudsters fault the agreement deliberately and demand a penalty fee of $100,000 or more from the buyer thus forcing the buyer to pay for a deal that never occurred; this is usual with many desperate facilitators and agents so be careful when you enter any deal because there are so many scammers on the prowl.

2. POP- Proof of Product

This document serves as a clear indication that the owner of the oil commodity has a true possession of the product. This document must also indicate that the seller has the commodity for sale as at the time of transaction. This document can be issued in hard copy but it is mostly delivered through electronic means (email). The buyer should make it a point of duty to carry out his due diligence by confirming the product before proceeding on any transaction with the seller.

If you are ever going to strike it big in the Nigerian Crude Oil and gas industry, you must focus on getting a genuine deal. The only requirement for a genuine deal is a letter of allocation from NNPC Crude Oil Marketing Department. The seller should be able to provide this to show the buyer he has a product up for sale.

Fraud in the oil and gas business is not only committed by Nigerians, it is committed by people all over the world. Insist on a proof of allocation in the form of a letter of allocation from the relevant government ministry or agency in charge of petroleum in any country. Failure to do this will only waste your time and money and you will be working for international fraudsters unknowingly.

Once you have a genuine copy, it is always easy to confirm but the trick is to make sure the letter is from a genuine agency with the authority to allocate crude oil or its by products. For Nigeria, only one agency has this power and it’s the NNPC crude oil marketing department. This is done in likewise manner in every country of the world to ensure that the process of lifting crude oil globally is never complicated and never inspires or motivates fraud in any way.

3. LOI- Letter of Intent

The LOI is a legal document that is issued by the buyer of an oil commodity. This documents indicates the buyers interest, it also specifies the specification and conditions upon which the buyer would love to transact the business.

Many a time, buyers issue LOI only to find out that the seller or his agent is not genuine or does not have the supposed product at hand. A lot of hungry facilitators do this when they are still struggling to get a supplier. They commit the buyer only to start hustling for a seller. Also note that the L.O.I has an expiry date but it can be re-issued.

4. Proof of Fund

a. Letter of Credit

b. MT 799

c. Bank Guarantee

d. MT 103

Proof of fund is a financial instrument that indicates to the seller that the buyer of the crude commodity is capable of buying the product. It shows that the buyer is financially capable to handle transactions of such huge magnitude. It is usually issued by the buyer’s bank, if the buyer is credible enough, his Bank should not be hesitant to issue this to the seller.

5. Facilitator

A facilitator in the oil and gas field is more or less like a middleman in the world of commerce. A facilitator is someone who searches for both buyers and sellers of an oil commodity; he in many cases look for agents to companies or individuals who need a particular oil product available for sale. A facilitator spends both time and money trying to get both genuine and serious buyers and sellers. A facilitator serves as a link between the buyer and the seller, every document for initiating a deal goes through him and he forwards to appropriate party involved. The work of a facilitator is very stressful and sometimes discouraging when he comes in contact with unserious persons, sometimes the chain of facilitators and agents to a deal make everything tiring. The success key for a facilitator is patience and persistence. The fee of a facilitator is much lower than that of an agent but it is something compared to the effort. A facilitator could earn up to 50 cents per barrel depending on the chain of people involved. So his pay is dependent on the number of barrels the buyer is willing to buy. If the buyer wants 2 million barrels of crude, multiply 50 cents by 2 million, you can do the mathematics and get the figure. In a case whereby a facilitator is dealing with another facilitator, they come to an agreement on how to share the 50 cent. What stops most facilitators from brokering a deal is greed. Everybody wants to make it big at the first strike, they forget that they would have more deals to broker. Most times a deal never pulls through because of this, but if they have understanding, things would just flow well.

6. Mandate

A mandate could be likened to the spokesman of the seller in most cases. The seller gives him authority to act on his behalf. He gets more commission than the facilitator; say $1 in most cases.

These are some of the few terms you should know in the Oil and Gas industry. More of these terms would be posted later.

7. TTO (Tanker Take Over): In oil and gas business there are various processes for procurement of commodity. TTO is one of those processes; as the name implies the buyer in this case would take over the vessel which contains the product; after his supercargo and inspectors come onboard, confirm product and do the Q & Q. This vessel would have to be chartered from vessel handlers; sometimes the seller pays for the vessel and after the buyer has confirmed product, he pays for total cost of product including charter fee. Most TTO deals do not take time to seal if the right things are in place.

8. TTT (Tanker to Tanker Transshipment): Unlike TTO, TTT requires that the buyer has his own vessel which would be utilized in loading the products which have already been loaded on a vessel. The buyer sends the Q88, ATL (Authority to Load) and CPA to the seller and the seller sends a NOR (Notification of Readiness) to the buyer vessel. TTT deals also do not take time to seal.

9. CIF (Cost Insured Freight): This process is usually backed up by an insurance cover. The seller bears the whole cost of loading the vessel and moving the products down to the port of discharge of the buyer; the buyer then conducts Q & Q and then pays for the product upon successful report. The seller in this case needs to be sure that the buyer can perform by requesting for a proof of funds.

10. FOB (Freight on Board): This is similar to the CIF but different in the sense that there is no insurance cover attached to it.

The above listed are some of the terms that are utilized in transacting crude oil business, you should learn to familiarize yourself with these oil and gas terms.

Factors That Hinder Prosperity in Crude Oil Business

2010-07-23T12:04:00.000+01:00

Statistics shows that over one million people world wide are trying to facilitate Crude Oil deals World Wide and only 1% success rate has been recorded; the reason for the very low success rate is not far fetched. So many factors hinder the successful completion of facilitating Crude Oil deals and these factors are not far fetched. Greed, insincerity, long chains of people, lack of information is factors that can hinder the success rate of facilitating a Crude Oil deal.

Bonny Light Crude Oil is the most desired of all specs of Crude Oil because of its low sulphur content which emits low carbon after refining; all most all Refineries and crude oil buyers cannot but help to purchase this commodity. The problem militating against sealing a deal is that most people involved in this business are being motivated by greed to make millions of money at a stretch; people no longer bother about the long term Business relationship that would be initiated after the first successful transaction. They become very myopic because of the huge amount of money that is involved and they are overwhelmed at the mention of this sum. I would give you a typical scenario.

Jack 35 has been into the Oil and Gas Industry for over 5 years; meaning he started his dealings in this sector 5 years ago. He has been near completion of deals but at the tail end, things fall apart. Jack never had a direct relationship with a seller or mandate. He knew a group of people who claim to know some other group of people who know a facilitator to the seller. Obviously, the strings linking to the seller or mandate is a very long one and as such it became very difficult for him to seal a deal even though he knew a couple of people who are facilitators to the buyer. Now the problem always arises before the Sales and Purchase Agreement is being signed; there is always a whole lot of argument as to who takes what amount and why he should take such an amount. They keep arguing about money sharing because there are series of people involved. This take a lot of time and nobody likes to waste his time; the interested buyer representative looses interest because nothing is forth coming and he moves on.

This keeps happening over and over again making it frustrating for him. If only he and the groups involved come to an understanding that after the first deal they would keep having more deals and more money; they don’t think that way, they just want to get a Lion share from the first deal like there is no other deal coming their way. They fail to understand the simple fact that if you are lucky enough to get a contract for 12 months with possible rolls of extension, it is almost a life long thing.

I read of the story of a young man who saw an AD in a newspaper, the AD requested for suppliers of crude oil, he quickly used his initiative and started looking for a supplier. He was lucky to have come in contact with a direct supplier, they came to an understanding and after many deliberations, they concluded that he would be making $75,000 for a period of 5 years. Whao! Isn’t that a lot of money? If he were the greedy type, probably he might have wanted a lump sum at a go and he wouldn’t have had the opportunity to earn money for a period of time. Maybe if he had the lump sum, he might have squandered the whole lot by now.

“The love of money is the root of all evil”, I am sure you are familiar with that quote. That deduction is very correct in all ramification; most people paint pictures of the kind of life they would live when they get such huge sums of money, even when the money is not readily at their disposal. This single thought leads to lies and deception in the Oil and Gas Business facilitation; because of the love of money, they become liars, they try to cheat, they become insincere with even themselves. This serves as a deterrent to successfully facilitate a deal; nobody wants to deal with a dishonest person, at the slight perception of your being deceptive, nobody wants to transact business with you anymore. You have to be very careful and sincere in transactions of such magnitude else you loose out forever. Image is very important in this business, if you can represent yourself sincerely and honestly, be sure to have a long lasting deal.