Resources: 10 Mistakes that Most People Make
There is one country in the world that is considered as one of the top suppliers of oil and it has so many reserves on their light crude oil. That place is a top crude oil exporter in the whole world. There are about millions of oil barrels generated from that place every single day. NNPC is known to be the place’s end supplier of crude oil. The allottees, operators, or fiduciary agents are the terms that you might have heard about. These traders consist the NNPC. These traders are responsible in looking for the buyers of the petroleum from the NNPC, but it is not the only way though.
There are so many steps that you need to follow if you want to buy petroleum from a certain oil supplier. These procedures are made to provide benefits to the buyer. These procedures will be made by almost all of the buyers in just the comfort of their homes. You must take note that the seller is responsible to provide the procedure, and not the buyer. A lot of these sellers will always have room for a negotiation with the procedure, so the buyer will always have a chance for a more fair bargain with the oil supplier. The NNPC will not allow their vessels to be loaded and keep waiting for the crude oil buyers. The vessels will be loaded with the oil right after the buyer and the oil supplier will have a deal.
Even though an SPA is signed by the buyer, the vessels will still not be loaded. The buyer cannot use the SPA as a proof that he or she will be able to pay for the petroleum. The NNPC will not be loading the vessel since anyone can sign an SPA. The thing that will be needed for the vessel to be loaded with the preferred quantity of oil by the buyer under his or her names is a POF or Proof of funds. You should pay attention to most of procedures that some unreliable buyers wrote then you will see that they will need the documents for the loaded vessel to be verified after signing the SPA. Most of these buyers are wrong in this part.
That is why you will need to follow the procedure of the end seller if you will be buying petroleum from some of the top oil suppliers in the world. You will not be worried about anything else if you will be following the procedure by the end seller. There are a lot of buyers that would complain that they have signed so many SPAs but the seller is not performing. There are two reasons behind this, the seller is not registered under the NNPC or the buyer did not show any proof of funds or POF.