Description
The pricing is as such, Platt plus
$.*6 cents per gallon for FOB Ahead of Kinder Morgan/Plantation
pipe
$. *2 cents per gallon any where along the Kinder Morgan pipe
$ . *7 cents per gallon to ship product via tanker
If the buyer banks at Bank of America it would be a 3 day prepay(
meaning they pay 3 business days prior to injection /loading)-in
this case the payment would be ledger to ledger since one of our
accounts is at BofA. In the event the buyer uses a bank other BofA
the prepayment would be 5 business days. The payment schedule would
be the same each month until the contract is complete.
Basic procedures
Buyer engages us with a written request to buy. The buyer should
attach their IRS **7 excise tax collection number that matches
their company name. The buyer should include their desired location
and logistics. If the product is being exported from the
Continental US the buyer should include copies of any export
licenses. If the product is JA1 in Europe the buyer should
include copies of their VAT number and the like.
Buyer should arrange whatever type of financial proof/industry past
participation and references. A conference call with the banker
would be a good start to give us confidence that they in fact have
the ability to perform
We would engage in a contract with the buyer
We would then submit a request for production to Exxon.
Once we receive the "offer to produce" from Exxon along with
logistic schedule, we would attach that production offer to the
contract and copies would then be submitted to the respective
banks.
Production would commence, and the logistic schedule would dictate
the payment cycle
Depending on the buyer and their references, the buyer may be
required to post their advance payment in an interest bearing
escrow or an SBLC to secure the first months delivery before
production. This would be based on what level of trust/
credit worthiness we have with the potential buyer. After the
relationship is established this security may be waived based on
performance.
