Direct Refinery Supply | CIF | Global Petroleum Derivatives Trading

 

Enerdealers operates under official Seller Mandate agreements, supplying petroleum derivatives directly from verified refineries. Our business model is built on transparency, procedural discipline, and long-term contractual supply relationships.

​

Why work with Enerdealers?​

​

• Direct refinery mandate structure.

• Strict procedural compliance.

• Transparent due diligence process.

• Long-term SPA framework.

• CIF & FOB execution at global hubs.

• Institutional-grade transaction structure.

We focus on secure, repeatable, and scalable petroleum supply solutions for serious End Buyers.

​

Where Are Enerdealers’ Refineries and Suppliers Located?

​

Enerdealers works with a diversified pool of refineries and petroleum product suppliers primarily based in:

• Kazakhstan

• Azerbaijan

• Poland

• Croatia

• The Middle East

• Africa

• Latin America

Our strategic sourcing network ensures reliability, flexibility, and access to refined petroleum products aligned with international trading standards.

​​

What does Enerdealers offer?

​​​

We supply petroleum derivatives directly from refineries under the following international trade terms:

​

CIF ASWP (Cost, Insurance & Freight – Any Safe World Port)

FOB (Free On Board)

• TTT (Tank-to-Tank)

• TTV (Tank-to-Vessel)

• VTV (Vessel-to-Vessel)

 

Major International Delivery Hubs.​

We operate at globally recognized energy trading ports including:

• Rotterdam

• Houston

• Jurong

• Fujairah

• Qingdao

• Shanghai

• Aktau

• Semey

and other strategic international ports.

 

How does Enerdealers work?​​

​​​

Our transaction model connects End Buyers directly with End Suppliers, ensuring procedural clarity and risk mitigation.

​

Step-by-Step Process

​

1. Buyer confirms alignment with refinery procedure and logistics.

2. Buyer submits:

   • LOI or official email from corporate address.

   • Company CIS (Client Information Sheet).

   • Signed Commitment Letter confirming price and procedure acceptance.

3. Buyer is formally registered with the refinery.

4. Refinery conducts due diligence.

5. Upon approval, Buyer submits ICPO.

6. Transaction progresses toward:

   • Trial lift.

   • 12-month SPA (Supply & Purchase Agreement).

   • Contract extensions and rollovers.

 

Enerdealers supports the Buyer throughout the full transaction cycle to ensure accuracy and smooth execution.

​

What does CIF mean in this transaction?

 

CIF (Cost, Insurance and Freight) means:

• Seller covers cost of product

• Seller covers marine insurance

• Seller covers freight to discharge port

• Buyer pays after cargo arrival, inspection, and confirmation at discharge port

Ownership transfer and risk allocation follow international CIF commercial standards.

​

What is required from the Buyer to start the transaction?

 

To initiate the process, Buyer must provide:

• ICPO (Irrevocable Corporate Purchase Order)

• Company Registration Certificate / Company Profile

• CIS (Client Information Sheet)

• Full Banking Details

• Acceptance of Seller’s Procedure

Some procedures also require:

• Passport copy (company director or authorized signatory)

• Acceptance Letter

Without these documents, Seller will not issue SPA.

​​

Are the Seller procedures negotiable or modifiable?​

​​​

No.

Refinery procedures are strictly non-negotiable.
All steps must be followed exactly as issued by the Seller.

This ensures compliance, operational efficiency, and protection for all parties involved.

​​

Who is authorized to order product?​

​​

Only the End Buyer is legally authorized to place an order.

​

The Buyer must submit:

• LOI or corporate email

• Company CIS

• Signed Commitment Letter

• Confirmation of selected procedure and price

 

Intermediaries cannot place orders on behalf of Buyers.​

​​

Can the Buyer conduct Due Diligence on the Seller?

 

Yes.

Once Buyer documentation is received, Enerdealers introduces the Buyer directly to the Seller Mandate and shares Seller details for independent due diligence.

​

After Buyer's satisfactory review, the Buyer may issue:

• ICPO

• Commitment Letter

 

to formally initiate the transaction.

​

Transparency and verification are core pillars of our operating model.

​

When can the ICPO be submitted?

 

The ICPO may be submitted only after the Buyer has completed satisfactory due diligence on the Seller.

The ICPO must be addressed to the Seller Mandate for processing with refinery management.

​

What happens after the ICPO is submitted?

 

The process generally follows:

1. Seller issues Draft SPA (open for amendments).

2. Buyer reviews, signs, stamps, and returns SPA.

3. Seller issues Final SPA (often notarized in some procedures).

4. Seller releases Partial Proof of Product (PPOP).

​​

Does a CIF transaction require financial guarantees?

 

Yes.

CIF petroleum transactions require either:

• SBLC (Standby Letter of Credit)
  or

• DLC (Documentary Letter of Credit)

 

These instruments secure the refinery’s exposure during cargo shipment.

​

What is a Partial Proof of Product (PPOP)?

 

PPOP typically includes:

• Certificate of Origin

• Statement of Product Availability

• Export License / Permit

• Product Passport / COA

• Commitment to Supply

• Proforma Invoice

 

These documents confirm allocation and seller authority before financial instrument issuance.

​

When does the Buyer issue the financial instrument?

 

After receiving and confirming PPOP, Buyer must issue within the specified timeline (usually 5–7 banking days):

• SBLC (MT760), or

• DLC (MT700), or

• RWA / MT799 / MT999 pre-advice (depending on procedure)

 

Failure to issue within timeline triggers the alternative performance deposit clause.

​​​​

What if Buyer’s bank cannot issue SBLC or DLC?

 

Each procedure provides an alternative:

• Fixed performance guarantee deposit (e.g., USD 457,850 or USD 500,000), or

• 5%–15% Security Guarantee Deposit via MT103 TT

 

This deposit:

• Secures product allocation

• Is deducted from first shipment value

• Allows shipment to proceed

​

Why are guarantees required in CIF transactions?

 

Under CIF terms, the refinery assumes:

• Vessel chartering costs.

• Freight charges.

• Cargo transportation risk up to discharge port.

 

The Buyer pays only after:

• Vessel arrival.

• Positive SGS/CIQ inspection at discharge port.

 

The SBLC/DLC ensures financial security during transit.

​

Does the refinery issue a 2% Performance Bond?

 

Yes.

The Seller issues a 2% Performance Bond (PB) in favor of the Buyer’s nominated bank.

This bond protects the Buyer in case the delivered product does not meet specifications defined in the SPA or seller doesn't permorm.

​​

When does the Seller issue the 2% Performance Bond (PB)?

 

After confirmation of:

• SBLC MT760 or DLC MT700, or

• Alternative guarantee deposit

 

Seller’s bank issues a 2% Performance Bond via SWIFT to Buyer’s bank.

The PB protects Buyer in case of Seller’s non-performance.

​

Is cargo insurance provided?

 

Yes.

The Seller provides marine cargo insurance coverage for 110% of the cargo value, protecting the shipment from loading port to discharge port against unforeseen events.

​​

What is included in Full POP?

 

Full POP is issued bank-to-bank via SWIFT and, depending on the procedure/refinery, may include:

​

• Allocation Title Ownership Certificate

• Export Permit

• Transneft Transport Contract

• Port Storage Agreement

• Charter Party Agreement

• Tank Storage Receipt

• SGS Quality & Quantity Certificate

• Bill of Lading

• Vessel Q88

• Commercial Invoice

• Customs documentation

• Legalized/Notarized SPA (in some procedures)

 

This confirms cargo allocation, logistics, and readiness for shipment.

​​

Who pays SGS inspection?

 

Depending on procedure:

​

• Loading port SGS – Seller may pay.

• Discharge port SGS/CIQ – Buyer pays.

 

Final payment is made after successful inspection at destination port.

​​

When does shipment commence?

 

Shipment begins:

• After financial instrument activation

• After 2% PB issuance

• After successful bank-to-bank confirmation

 

Loading typically occurs within 3–10 working days depending on the specific procedure.

​

When does Buyer make full payment?

 

Payment via MT103 / TT Wire is made:

• After cargo arrival at discharge port

• After SGS / CIQ confirmation

• Within 3–5 banking days (depending on procedure)

​​

When are intermediaries paid?

 

Seller pays all intermediaries:

• Within 24–48 hours after receiving Buyer’s payment

• According to signed NCNDA/IMFPA

​

What is the purpose of NCNDA / IMFPA?

 

NCNDA (Non-Circumvention, Non-Disclosure Agreement) and IMFPA (Irrevocable Master Fee Protection Agreement):

​

• Protect all mandates and intermediaries

• Define commission structure

• Ensure secure and transparent payout

 

These are typically notarized and lodged with banks.

​

Can the Buyer visit the loading port?

 

In some procedures, Buyer is invited to witness SGS inspection at loading port. This is optional and subject to Seller’s coordination.

​

What must Buyer’s bank be prepared for?

 

Buyer’s bank must:

• Be capable of issuing SBLC MT760 or DLC MT700

• Communicate via SWIFT with Seller’s bank

• Issue instrument strictly per Seller’s approved verbiage

• Respond within defined banking timelines

 

Delays invalidate allocation.

​

How long is the contract valid?

 

Some procedures indicate:

• SBLC validity: 366 days

• Monthly shipments for up to 12 months

• First trial shipment followed by contract performance period

​

What protects the Buyer?

 

Buyer protection includes:

​

• 2% Performance Bond

• Bank-to-bank SWIFT communication

• SGS inspection at destination

• Payment only after successful inspection

• Legalized SPA (in certain procedures)

​

What disqualifies a Buyer?

 

Buyer is disqualified if:

​

• Unable to issue financial instrument within timeline

• Requests procedure modification

• Seeks POP before financial commitment

• Bank cannot communicate via SWIFT

• Financial capacity is unverified

​

​

FINAL NOTES FOR BUYERS & MANDATES

​

• These are structured institutional trade procedures.

• Seller allocates product only to financially capable buyers.

• Bank readiness is mandatory before engagement.

• Timelines are strictly enforced.

• No instrument = no allocation.

​

​

​