The Market Playbook : Onboarding New Buyers

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Moving forward, we will no longer compromise on compliance or risk reputational damage in any future transactions. To ensure transparency and security, we require thorough assessments of all buyers (Off-takers) under strict KYCC (Know Your Customer’s Customer) policies—this is non-negotiable.

While we are fully capable of managing internal business matters, we will no longer engage with intermediaries agents due to compliance and procedural requirements. All transactions must adhere to our established protocols without exception.

Parties Involved

Seller: National Oil Corporation's (NOC's) – Junior Trading Houses and or Suppliers in the African and Gulf Cooperation Council (G.C.C) Middle East regions.  

Buyer: Qualified counterparties globally,  

Products: Crude Oil grades, Diesel grades, Jet A‑1 fuel, LNG, other distillates to be discussed. 

a. Banking details (Corporate account, SWIFT/BIC),

b. Full corporate profile (registration, ownership, relevant licenses),

c. Reference to the applicable Know‑Your‑Client (KYC/KYCC) requirements for the buyer’s jurisdiction is a prerequisite. 

a. Participants: senior representatives from both the buyer’s side and NOC’s Junior Trading Desk.

b. Objectives: confirm product specifications, discuss preliminary terms, and outline next steps.

a. Product grade, quantity, and delivery schedule,

b. Pricing formula (benchmark vs. discount),

c. Incoterms and any special handling requirements, 

The buyer returns an Irrevocable Corporate Purchase Order (ICPO) together with a completed Client Information Sheet (CIS).

4a. KYCC / Credit Risk Assessment

· The trade desk conducts a KYCC review and credit assessment.

· Upon successful verification, that the buyer has the financial capabilities to purchase the fuel, the seller provides a draft General Terms & Conditions Sales‑Purchase Agreement (GTC-SPA) template which include:

· Governing law, arbitration clause, demurrage provisions,

· Detailed purchase term sheet aligned with the agreed Incoterms procedures,

· Banking instructions and standard Letter‑of‑Credit (LoC) wording from Tier‑1 banks.

4b. Confidentiality & Brokerage Agreements

· Execution of a Non‑Disclosure & Non‑Compete Agreement (NCNDA) and any required ICC brokerage documentation.

4c. Pre‑Advice via SWIFT (Option 1)

· MT 799 (pre‑advice) followed by MT 760 / BG (SBLC) – cash‑backed, irrevocable, unconditional, divisible, transferable, assignable, callable.

4d. Pre‑Advice via SWIFT (Option 2)

· MT 199/705 (pre‑advice) and MT 700 (documentary credit) – confirmed, irrevocable, transferable.

4e. Performance Bond

· Submission of a Performance Bond (as per the SPA) to secure contractual obligations.

4f. Pricing Details

· Specification of the exact discount applied to the relevant Platts benchmark, together with any fees or commissions.

4g. Logistics Information

Confirmation of:

· Terminal and grade specifications,

· Monthly liftable volume,

· First lay‑can (first available loading window).

4h. Commercial Documentation

· Provision of Commercial Invoices and Wire Transfer Templates for payment processing.

· All amendments to the above items are negotiated and documented in accordance with the agreed Incoterms.

· The finalized General Terms & Conditions – Sale & Purchase Agreement (GTC‑SPA) with Purchase Term Sheet (PTS) is signed by both parties and forwarded to their respective banks for confirmation.

· Upon bank acknowledgment, operational activities (loading, shipping, invoicing, and payment by bank transfer MT103/TT) commence as stipulated in the contract.

· Ensure that all legal counsel reviews the final SPA and related agreements before execution.