Summary Information of third crude oil Supply in Iran Exchange
General Terms and Conditions
- Commodity commercial name: Iranian light crude oil.
- Supply trading date: 4st of February 2019.
- Maximum supply volume: 1,000,000 Bbls
- Minimum purchase volume (LOT size): 35,000 Bbls.
- Operational tolerance: ±10% as operational tolerance for each cargo.
- Delivery type and point: FOB Kharg terminal or via ship to ship operation in Kharg anchorage area.
- Delivery period: from 6th of March till 5st of April 2019.
- Base Price: 56.24 USD per Bbl.
- Qualification of participants: Being capable of deposit 6% of the order’s value in Iranian Rial latest by two hours before the beginning of supply trading time.
- The destination for purchased crude oil cargo is limitless and export to all countries except the occupied territories of Palestine is allowed.
- Buyer should deposit 6% Iranian Rial of the order's value into the accounts announced by Central Securities Depository of Iran (hereinafter "CSDI") before the beginning of supply trading date.
- The exchange rate for above mentioned deposit is based on the average daily sale and purchase of USD on the SANA system, on 2 business days before the date of this supply information announcement, provisional and final invoices.
- Purchase by all domestic and foreign companies is unrestricted and providing Buyer's information including company phone number, name and phone number of the Buyer's representative, official email, official fax number, registration code, address, economic code, national identification number and legal foreign entities inclusive number is required.
Payment / Settlement terms and conditions:
Payment/settlement procedure can be done in conditional or full cash payment format based on Buyer’s request, 14 days before the first day of loading date range:
1) Conditional payment :
- Through 20% of cargo’s value in Iranian Rial in cash (based on SANA exchange rate two business days prior to the issuance date of provisional invoice) and 80% of UD Dollar portion of cargo’s value will be paid by submitting the Iranian Rial Bank Grantee or LC pledge which must be finally settled latest by 90 days after Bill of Lading date of cargo via foreign currencies acceptable by NIOC or Iranian Rial. In other words, after the deposit 6% Iranian Rial of the order’s value in cash, latest by two hours before the start of the supply trading time, the rest part to 20% Iranian Rial portion of cargo’s value will be paid in cash latest by two business days before the first day of loading date range. Simultaneously, Buyer must provide the reliable Iranian Rial Bank Guarantee or LC Pledge from acceptable banks by NIOC equivalent to 125% of the remaining balance (125% of the total 80% Dollar value of the transaction), to Beneficiary of CSDI.
2) Full cash payment in Iranian Rial:
- After the deposit of 6% Iranian Rial of the order’s value in cash latest by two hours before the start of the supply trading date, 100% of provisional cargo value in Iranian Rial must be paid in cash (based on SANA exchange rate two business days prior to the issuance date of provisional invoice) and as per the provisional invoice latest by three business days prior to the first day of cargo loading date range.
- Final settlement shall be done latest by three days after Bill of Lading date of cargo and based on the Buyer’s payments and the provisional and final invoices.
Final Price formula:
NIOC will announce the final price of the each cargo (PFinal), ten Business days before the first day of the loading period, according to the following formula:
PFinal= Pc (POil L/ POil S)
PFinal: The final price is in US Dollars, which will be issued on the basis of the provisional and final invoices.
Pc: The price which will be discovered on supply trading date in US Dollar.
POil L: The average of all available Brent dated crude oil quotations during 5 international business days prior to one calendar day before issuing the provisional invoice.
POil S: The average of all available Brent dated crude oil quotations during 5 international business days prior to on calendar day before the date of supply trading date.
Delivery Terms and conditions:
- Buyer shall nominate the vessel (which meets all the required conditions and standards described as per NIOC GTC) and send its Q88 to NIOC latest by 10 calendar days after the date of the supply trading date. If the vessel meets the required conditions, the acceptance will be declared to the Buyer after 2 business days. Otherwise, Buyer has another 10 calendar days to nominate new vessel. In case of any failure to nominate a suitable vessel within the above mentioned period, this would be considered as Buyer's unwillingness or inability to lift the cargo and the contract will be canceled through official announcement of NIOC to CSDI
- Delivery of the cargo(es) with less than 350 Mbbl volume will be done via STS operations and for more than 350 Mbbl, it will be done from Kharg terminal/jetty or via STS operation which will be as per NIOC’s option.