OSP STANDARD PETROLEUM SALES AND DELIVERY PROCEDURES

 

These procedures apply to petroleum products offered for sale by OneSource Petroleum LLC (“Seller”), unless otherwise stated in the applicable Sales and Purchase Agreement (“SPA”).

1. Buyer issues a Letter of Intent (“LOI”).

2. Seller reviews the buyer's LOI and issues a Soft Corporate Offer "SCO" to buyer and request Proof of Funds "POF"

3. Buyer issues proof of funds, BANK TO BANK.

4. Seller Issues Sales and Purchase Agreement "SPA" to buyer.

5. Buyer executes and returns SPA

6. Seller issues Proforma Invoice

7. Buyer's Bank issues instrument, an Irrevocable LC, DLC, SBLC to cover the transaction cost.

8. Seller delivers the product in accordance with the SPA and issues the final Commercial Invoice for payment of the goods delivered. Product  custody and title are released to Buyer at the transfer point and upon satisfaction of the conditions stated in the SPA.

9. Buyer pays the final Commercial Invoice by MT103 within forty-eight (48) hours after payment becomes due under the SPA. If Buyer fails to make full payment within that period, Seller will present the required documents to the issuing or nominated bank and draw the unpaid amount under Buyer’s Irrevocable SBLC, subject to the terms of the SPA and the SBLC.

10. Seller’s presentation will include: (1) A signed demand for payment identifying the SBLC number and amount demanded; (2) Seller’s signed certification that the final Commercial Invoice remains unpaid after the forty-eight (48)-hour payment period; (3) The executed SPA; (4) The final Commercial Invoice; (5) An independent Quantity and Quality ("Q&Q") report issued by SGS, Saybolt, Intertek, or another inspector approved in the SPA, confirming product conformity; and (6) The executed product delivery documentation required by the SPA, such as the Bill of Lading, Product Transfer Receipt, Terminal Receipt, Delivery Acceptance Certificate, pipeline injection confirmation, or tank-transfer receipt, as applicable.

 

Controlling Documents. The SPA and the final agreed wording of the Irrevocable Standby Letter of Credit ("SBLC") control if either conflict with these procedures.

Documentary Compliance for Final Payment, or SBLC Draw. All documents submitted for final payment, or presented for an SBLC draw, must comply with the SPA and the final SBLC and must be consistent as to the parties’ names, amounts, dates, SBLC number, transaction references, certifications, and other required information. Any discrepancy may delay or prevent payment.