ATTENTION: Refined Petroleum Products
RE: Refinery Direct SPA Procedures
Greetings,
We are in a very unusual position in the refined petroleum market. Our group works at mandate level with approximately 32 refineries worldwide, including major refinery groups such as Shell, BP, and Exxon.
These relationships have been developed over approximately 15 years. Genuine refinery mandate relationships are rare, and our position has been built through a long track record of bringing qualified buyers and properly prepared ICPOs to refineries in a form that matches the refinery’s established sales procedures.
Our process begins as follows. I will send the SCOs on request.
Once We can continue communication with email and conference calls to clarify the exact requirements, including:
• product
• quantity
• destination
• target pricing
• logistics
• receiving capability
• contract duration
We then identify the refinery best suited to fulfill the buyer’s requirements.
Before an ICPO is submitted, we make sure that both sides clearly understand the complete transaction structure. The buyer must understand the refinery procedure, and we must fully understand the buyer’s ability to perform every required step.
Once that has been established, the buyer submits an ICPO mirroring the procedure stated in the selected SCO, together with the required CIS.
It is also very important that the buyer can demonstrate its ability to receive the product.
For example, in a tank-to-tank transaction, the buyer must be able to demonstrate that it is working directly with the tank company and not through an intermediary or broker representing the tank company.
In short, every stage of the transaction must be verified, transparent, and workable—from issuance of the refinery commercial invoice and execution of the SPA through product transfer, title transfer, and final payment.
A refinery will not commit to a contract involving hundreds of millions of dollars in product unless it is satisfied that the transaction can proceed from beginning to end without a failure in the middle of the process.
I would be very pleased to arrange a conference call with you through Google Meet or WhatsApp so that we can get acquainted, better understand your requirements and capabilities, and determine how we may be able to work together.
I am based in the U.S. Mountain Time Zone. I look forward to speaking with you soon. If you could review the procedures.
Sincerely,
Thomas Baughman
VP Global Sales
Van Dyke Energy
+1(307)899-2542
tc@vandykeenergy.com
Whats app 3078992542
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