Fuel Procedures and Pricing as of June 10, 2020

CIF #1 REFINERY TRANSACTION PROCEDURE  CIF

1.Buyer issues Irrevocable Corporate Purchase Order (ICPO) in sellers name along with Company Profile and CIS

2. Seller issues Draft Sale and Purchase Agreement (SPA), for Buyer to countersign upon acceptance of terms and conditions

3. Seller confirms final contract, at own expense, notarizes it and submits Partial Proof of Product (via email) as follows:

A. COMMITMENT LETTER TO SUPPLY THE PRODUCT
B. COMMODITY TRANSACTION PASSPORT
C. COMMERCIAL INVOICE
D. FINAL NOTARIZED COPY OF SPA
E. SELLER'S REGISTRATION
F. CERTIFICATE OF ORIGIN

4. Upon Seller receipt of the above Partial Proof of Product (PPOP)Documents, Buyers bank within ten (10) working days, shall issue SBLC MT760 OR DLC MT700 to Seller's bank

a. If the Buyer fails to issue the agreed instrument within the Stipulated time period, the Buyer will pay 15% of the total product by MT 103 TT  Wire to the Seller to guarantee the shipment. This amount will be deducted from the total product after SGS inspections.

b. After confirmation of Buyer's instrument, once and if done by the Buyer, Seller’s bank responds with a contractual operative 2% PB after five (5) working days.

c. Buyer and his team visit for Table Top Meeting (TTM) to conclude the signing of hard copies for the rolls and extension of the contract

5. Seller signs CPA with Shipping/Logistics company at their own cost and full POP is issued to the Buyer's bank within twenty-four (24) hours. The seller alerts the Buyer on shipment schedule accompanied with the submission of nominated vessel details to the Buyer

6. After SGS inspection timeline loading starts as per the delivery schedule agreed in the contract

7. Vessel sails to destination port/location, Seller issues DTA and ATB for Buyer to conduct the Dip Test

8. Buyer releases payment for each shipment 100% via MT 103 -T/T for the Total Cost of the Product after the CIQ at Buyer Discharge Port and Seller will transfer title.

9. Seller provides 110% insurance in favors of the Buyer

SOFT CORPORATE OFFER ON FOB CI DIP AND PAY #2

1. Buyer issue’s Irrevocable Corporate Purchase Order (ICPO) in line with seller’s procedure and Tank Storage Agreement (TSA) as proof of storage tank availability.

2. Seller review buyer’s ICPO / TSA and if accepted, responds with issuance of the Commercial Invoice (CI) for the available quantity to be lifted for Buyer’s review and endorsement within its validity. Buyer’s storage company is also requested to endorse the Commercial Invoice in its column provided.

3. Upon receipt of the endorsed Commercial Invoice (CI) by buyer and its storage company, seller issues the below set of PPOP documents:

A. Fresh SGS Report (Not older than 72 hours).
B. Commitment to supply.
C. Product Passport.
D. Countersign and Legalized Commercial Invoice.

4. Upon receipt and confirmation of the above PPOP documents, Buyer sends to Seller its Tank Storage Receipt (T.S.R) duly issued by the Tank Farm Company, Seller verifies Buyer storage facilities and upon satisfactory verification process, the below Full POP documents are issued :

A. Unconditional Dip Test Authorization
B. Port Injection Report (P.I.R).
C. Authorization to Sell and Collect (A.T.S.C.).
D. Certificate of Origin
E. NCNDA/IMFPA.

5. Upon successful verification of the Full POP documents, Buyer orders His / Her SGS, Intertek or its equivalent team to conduct Dip test on the product in Seller's tank at Buyer’s expense. (Optional)

6. Following the completion of the Dip Test, injection commences into buyer’s leased storage tanks and upon completion of injection, Seller issues to Buyer Full Injection Report (FIR).

7. Buyer makes 100% payment by MT103 TT wire transfer for the total product and Seller pays commission to all intermediaries involved in the transaction within 24 hours upon confirmation of buyer’s payment.

8. Seller issues Draft Sales Purchase Agreement (SPA) to buyer to review for R&E monthly deliveries.

9. Buyer reviews and approves the SPA and issues SBLC/IRDLC irrevocable, nontransferable, auto revolving for 12 monthly shipment value and documentary letter of credit for length of contract and for each lift per schedule. Buyer pays after dip test by MT103 Wire transfer on each monthly quantity.

10. The subsequent delivery shall commence according to the terms and conditions of the contract.

Procedure: FOB Rotterdam / Houston - TTO

1. Buyer issues its ICPO addressed to seller / title-holder

2. Seller issues Draft Commercial Invoice for buyer’s review and endorsement

3. Upon receipt of the endorsed Commercial Invoice from buyer, Seller reverts with Legalized and Countersigned copies of the Commercial Invoice alongside the below PPOP Documents

A. Commitment and Assurance Letter to Supply
B. Statement of Product Availability
C. Notice of Readiness to Supply
D. Tank Storage Receipt (TSR)

4. Buyer upon receipt of the above PPOP Documents contacts seller's storage company with the information on the tank receipt and make an extension on the tanks for the number of days required for dip test and injection.

5. Upon successful tank extension, seller issues an Unconditional Dip Test Authorization (DTA), buyer presents its testing officials, SGS or its equivalent and Dip Test is carried out.

6. Upon a successful Dip Test, seller issues the below Full POP Documents

A. Pipeline Injection Report
B. Certificate of Product Origin
C. Authorization to Sell and Collect Certificate (ATSCC)
D. Product Allocation Certificate
E. Title of Ownership Transfer Certificate

7. Upon receipt of the above POP Documents, injection commences into buyer's vessel while buyer makes payment of the total cost of product via MT103 (T/T Wire Transfer)

8. Seller within 24 hours upon receipt of buyer’s payment pays allocated commission to all intermediaries

9. Seller issues a contract for buyer’s desired duration upon successful completion of the trial order. Subsequent monthly shipment continues as per terms and conditions of the sales and purchase agreement contract to be signed between buyer and seller.

Buyer Tank take over

TRANSACTION PROCEDURES FOR TRIAL SHIPMENT CIF ASWP

1. Buyer issues Irrevocable Corporate Purchase Offer (ICPO) to seller in line with seller working procedures.

2. Seller issues Sales and Purchase Agreement and Commercial Invoice (SPA & CI), buyer countersign within its validity and Returns signed SPA & CI along with Charter Party Agreement (CPA) from any Russian Shipping company.

3. Seller verifies the Buyers nominated shipping company and jointly signs the CPA and as well split the freight charges with the buyer. Seller Returns signed CPA along with POP documents:

A. Refinery Product Passport,
B. Certificate of Origin
C. Commitment to supply,
D. Export License

4. According to signed CPA by buyer and seller. Nominated shipping company on confirmation of the both parties freight charges will issue copy of Q88 and NOR “Notice of Readiness".

5. Subsequent to Q88 and NOR “notice of readiness”. Seller loads the product into vessel and issues all exportations documents to the buyer. Vessel sails to the buyers destination Port.

6. Upon arrival of the vessel at the buyers discharge port, buyer conducts Q&Q. Subsequent to successful Q&Q report at the buyer discharge port. Buyer makes payment for the total product Quantity via MT103

7. Seller pays commissions to mandates and intermediaries within 24hrs after confirmation of the buyers’ payment.

Fuel Pricing As Of June 10, 2020

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