I, Warwick John Lansell-Smith, as a director of Furbelow Pty Ltd and as an authorised procurement representative for a European banking group and their fully qualified and experienced oil clients, do hereby express intent to purchase the following Russian, refined wholesale products,
1. Gasoil (D2) GOST 305-82 (20-50ppm) — 50,000 trial Spot with automatic roll up to 500,000 metric tonnes per month with rollovers and extensions in the terms and conditions mutually agreed in a determined contract. Total Quantity: 6,000,000 MT per annum.
2. Jet fuel JP54 colonial grade — 500,000 bbls trial Spot with automatic roll up to 5 million barrels per month with rollovers and extensions in the terms and conditions mutually agreed in a determined contract. Total Quantity: 60,000,000 bbls per annum.
3. Fuel oil (Mazut) straight run, type 1 M100 10585 -/75 and -/ 99 — 50,000 000 trial Spot with automatic roll up to 500,000 metric tonnes per month with rollovers and extensions in the terms and conditions mutually agreed in a determined contract. Total Quantity: 6,000,000 MT per annum As you would be aware, International banking regulations are being tightened and enforced from 1January 2014. In order for the banking group and its` clients to engage, any procedures must be bank compliant. The attached procedures reflect 2014 bank compliance.
Attachment: Bank Compliant Procedures — 2014
SELLER SENDS SCO ADDRESSED TO BUYER GROUP
1. BUYER ISSUES LOI/ICPO ACCOMPANIED BY: CORPORATE PROFILE
2. SELLER ISSUES FCO/DRAFT SPA CONTRACT ACCOMPANIED BY: CORPORATE PROFILE (if SELLER IS NOT HOUSEHOLD NAME) TO BUYER FOR REVIEWING. BUYER MAKES ANY AMENDMENTS AND AFTER ACCEPTANCE BY SELLER RETURNS WET SIGNED AND
SEALED DOCUMENT WITH ACCEPTANCE LETTER, THAT THE BUYER ACCEPTS THE SELLER’S SPA WITH THE BANKING COMPLIANT PROCEDURES.
3. AFTER EXCHANGE THE SELLER AND BUYER LODGE THE CONTRACT IN THEIR RESPECTIVE BANKS.
4. SELLER`s BANK SENDS PARTIAL or FULL POP TO BUYER`S BANK. PARTIAL POP MUST INCLUDE PRODUCT DEAL PASSPORT AND REFINERY TESTING with TANK RECEIPT or SGS AT EXPORT TERMINAL
5. BUYER`s BANK SENDS RWA OR SOME FORM OF LETTER OF UNDERTAKING TO SELLER`S BANK. eg, BUYER IS RWA FOR TRIAL SHIPMENT AND RDLC OR DLC WILL BE PROMPTLY ISSUED SUBJECT TO THE DOCUMENTS SPECIFIED IN THE TERMS OF THE SPA. (MAJORS` BANK WOULD ISSUE THE INSTRUMENT`S DRAFT VERBIAGE TO THE SELLER`S BANK INSTEAD OF RWA, VERBIAGE TO BE AGREED AND CONFIRMED).
6. UPON RECEIPT OF PROOF OF FUNDS, SELLER’S BANK IMMEDIATELY SENDS ALL SHIPPING DOCUMENTS AND FULL POP (INCLUDING DTA, TANK RECEIPTS, FRESH SGS) TO BUYER’S BANK
7. UPON VERIFICATION OF THE POP DOCUMENTS AND SUCCESSFUL DIP TEST, THE BUYER ISSUES MT103 OR TT TO SELLER`s BANK FOR THE FIRST LIFTABLE LOT
8. LIFTING TAKES PLACE AND SHIPMENT IN LINE WITH CONTRACT
9. SELLER TANSFERS TITLE to BUYER
10. BUYER LODGES DLC or RDLC IN VALUE OF LIFT ONE AND REVOLVES FOR ALL REMAINING LIFTS TO FULFILMENT OF CONTRACT PER SPA DELIVERY SCHEDULE.
SHIPMENTS TO BE PAID BY MT103 or T.T. with ASSOCIATED CONTRACT COSTS.
DLC Verbiage as agreed in Point 5.