Why am I being asked to sign a blank contract?
The original of that blank contract you are signing is actually signed, stamped and sealed by the seller. But to avert any room for circumvention the contract is “sanitized.” If the contract came from us, you can be sure it is signed by the sellers, so do not worry. After you sign, seal and stamp the contract, you will be given a copy of the complete version with all the details of the seller, Proof of Product, etc.
I have seen this contract before-the verbiage and the details of the deal identical. Could this be fake?
Contract format in this business is, like money, very standard. Fake contracts have been patterned from real ones, so the elements are the same. Furthermore, many contracts have exactly the same product details, volume, monthly delivery, pricing and discount structure, but the difference is in the CONTRACT NUMBER, which is hidden from view until BCL is obtained and verified. When the contract comes from us or any of our authorized intermediaries, you are 100% assured that it is authentic.
Why is the quantity and discount in the contract different from my LOI / ICPO?
Contracts are awarded very fast, due to the long line of willing buyers. Although we have priority, we also have a small window of time to comply—usually 2 working days. Beyond that time the contract may go to the next buyer on the “waiting list.” Therefore, we you get a contract from us, please sign and comply with the procedures with no delay.
When you delay, the contract gets awarded to the buyer next in line. Therefore we will take the next available contract which may have a different quantity, discount structure, etc. It is up to you to accept this contract. But we advise that you do because it is extremely difficult to get an allocation that fits exactly with your expectation. To prevent this, there is only one solution: do not delay.
What happens if I sign a contract and fail to comply with the procedures?
If the reason for non-compliance is legitimate, then you will just miss the contract. If it is found out that the delay:
- is intended to circumvent us or any of the authorized intermediaries,
- you were not serious about concluding the deal,
- or you have claimed to have funding but actually do not have it
then you may be blacklisted by our organization and this may harm your future attempts to deal with us or our associates, partners or even competitors. Therefore, please always be upfront and honest about your intentions.
I have been offered low-price diesel from SouthEast Asia . Is this reliable?
If the price is good we recommend that you take it. However, we caution about the risks of poor product quality, short or no delivery, and other underperformance risks, which may actually cost you more. We cannot vouch for its reliability since it is outside the norm of petroleum trading.
Our company does not issue BCL. Can I get oil elsewhere?
When before some suppliers still accommodate no-BCL contracts, it is very rare today, simply because there is so great a demand. We can only wish you luck.
How do I know my portion of the commission is protected?
Our integrity is beyond question in this industry, and this is your greatest guarantee that your portion will be delivered to you at the time agreed. Furthermore, our commitment is covered by a standard Masterfee Protection Agreement which is your legal hold.
I do not want to go through intermediaries because it raises the price. I want to deal directly with suppliers or their authorized mandates.
Again we can only wish you luck. Unless you are closing a government-to-government deal, then it is highly unlikely that any direct seller will even entertain you. You have to be extremely lucky, because this is outside the norm of petroleum trading.
Entry-level and Fake Oil Traders – How to Identify Them
We include this section to warn serious buyers who deal with unscrupulous “mandates” and new players and intermediaries who make real traders like us look bad. There are tell-tale signs of new or fake players:
- New or fake players always ask for a quotation first. A real buyer never asks such questions, and a real supplier will not quote you below prevailing marketscan prices. If they do, they either have a rare connection (we advise you to grab this deal with no further delay), or just want to get your information to use in getting a deal with suppliers. But more often than not this results in a signed contract but no deliveries, leaving the buyer extremely frustrated and distrusting of new suppliers.
- Buyers insisting on their banking procedures. Every veteran buyer knows that the petroleum trading business is the SELLER’S CALL. They know that no matter how much money they have in their bank, it is useless unless a seller is willing to sell. Every seller has a procedure that he/she wants followed, to protect the faithful intermediaries whose relationship with them has been at least a few decades old. A serious buyer will put up the required Bank Comfort Letter, knowing that there is nothing to lose should the supplier default on his/her commitment.
- Delayed compliance with documentation requirements . Every new or fake buyer or intermediary will cause a great delay in complying with procedures. Frequently this is because the buyer does not have real, available funding as he/she claims to have in the beginning. Those who have no word of honor will never close a deal in this trust-controlled business. The contract always goes to the buyer who complies without making it difficult for the seller and seller intermediaries.
