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JET A-1 AVIATION FUEL – FOB HOUSTON (REFINERY PRODUCTION)

Transaction Procedure – One-Time Spot Transaction
Commercial Terms

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  • Product: Jet A-1 Aviation Turbine Fuel meeting ASTM D1655 and DEF STAN 91-091 specifications.

  • Origin: United States refinery production, Houston, Texas.

  • Quantity: As agreed between Buyer and Seller (±5% at Seller's option).

  • Delivery Terms: FOB Houston, Texas (Incoterms 2020). Title and risk transfer at the refinery custody transfer meter.

  • Pricing: Platts US Gulf Coast Jet Fuel Assessment minus USD $3.00 per barrel, based on the pricing date reflected on the final custody transfer documentation.

  • Payment: Full payment via MT103 wire transfer to Seller's designated Attorney Trust Account (IOLTA) or approved Escrow Account against refinery allocation documents, Certificate of Quality (COQ), and lifting authorization. No upfront deposit required.

Transaction Procedure

Step 1 – Initial Due Diligence

Buyer and Seller exchange complete KYC and compliance documentation. Seller issues a Soft Corporate Offer (SCO) or Proforma Invoice (PI). Buyer signs and returns the document together with verifiable Proof of Funds (POF).

 

Step 2 – Commercial Documentation

Upon successful review of Buyer's documentation, Seller issues the Commercial Invoice (CI) to Buyer's corporate email address, accompanied by:

  • Current refinery Certificate of Quality (COQ) and/or Certificate of Analysis (COA);

  • Refinery allocation confirmation;

  • Lifting authorization evidencing the committed volume available for transaction.

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Step 3 – Verification Process

Buyer conducts verification of all provided documents, including the COQ/COA, allocation confirmation, and lifting authorization. Verification may be coordinated directly with Seller and Seller's escrow counsel.

At Buyer's discretion and expense, Buyer may appoint an independent inspection company such as SGS, Intertek, or Saybolt to witness custody transfer metering and representative sampling at the refinery transfer point. Product quantity and quality shall be determined by custody transfer metering; no tank dipping procedures apply.

 

Step 4 – Payment

Following successful verification, Buyer remits full payment via MT103 wire transfer to Seller's designated Attorney Trust Account (IOLTA) or Escrow Account as specified by escrow counsel.

Payment is made against:

  • Refinery Certificate of Quality;

  • Allocation confirmation;

  • Lifting authorization.

Payment must be received and confirmed prior to custody transfer.

 

Step 5 – Product Transfer & Documentation

Upon confirmation of cleared funds, the refinery transfers the product through the designated custody transfer point into Buyer's nominated logistics system, including pipeline, vessel, storage facility, or trucking arrangement.

The following final documents are issued:

  • Custody Transfer Meter Tickets and Transfer Certificate;

  • Independent Inspection Report and Final Quality & Quantity Certificate (if applicable);

  • Final Certificate of Analysis (COA);

  • Title Transfer Documentation issued in Buyer's nominated company name;

  • Final Commercial Invoice reflecting actual metered volume and agreed Platts pricing on the transfer date.

 

Step 6 – Transfer of Title and Risk

Title ownership and risk transfer from Seller to Buyer at the refinery custody transfer meter in accordance with FOB Houston (Incoterms 2020).

From that point forward, Buyer assumes full responsibility for:

  • Freight and transportation;

  • Insurance;

  • Customs duties and taxes;

  • Storage and downstream logistics;

  • Product nominations and receiving capacity.

 

Step 7 – Final Reconciliation

Any adjustment between the estimated Commercial Invoice and the final invoice based on actual metered volume shall be reconciled within two (2) banking days following issuance of final documentation.

Any future liftings, extensions, or repeat transactions shall be subject to separate negotiation and mutual written agreement between Buyer and Seller.

 

Note: This transaction is based on direct refinery production allocation. Product is delivered directly from refinery production through the custody transfer system and is not sourced from third-party storage tanks or commercial inventory holdings.

2007-2010

Mexican Maya Crude Oil – CIF Gulf Coast

One-Time Spot Transaction
Commercial Terms

  • Product: Mexican Maya Crude Oil, in accordance with the attached product specifications.

  • Quantity: 1,000,000 Barrels (+/- 5% at Seller's option).

  • Delivery Term: CIF Gulf Coast, USA (Incoterms® 2020).

  • Pricing: Platts WTI assessment on the Bill of Lading (B/L) date less USD $4.00 per barrel.

  • Payment: Full payment via MT103 wire transfer to Seller's designated IOLTA Attorney Trust Account upon confirmed completion of loading. No advance payment or loading deposit required.

Transaction Procedure

  1. KYC & Initial Documentation

    • Buyer and Seller exchange complete KYC packages.

    • Seller issues a Proforma Invoice (PI) to Buyer.

    • Buyer signs, seals, and returns the Proforma Invoice together with verifiable Proof of Funds (POF).​

  2. Commercial Invoice & Product Verification

    • Upon acceptance of the Proforma Invoice, Seller issues the Commercial Invoice and the most recent Certificate of Analysis (COA) to Buyer's corporate email address.

    • Buyer reviews and verifies the COA, Commercial Invoice, and transaction procedure through Seller's designated IOLTA legal counsel.

    • Buyer may, at its own expense, appoint an independent inspection company (SGS, Intertek, Saybolt, or equivalent) to perform confirmatory Quantity and Quality (Q&Q) inspection at the loading terminal.​

  3. Logistics & Cargo Scheduling

    • Following successful verification of the COA and confirmation of Buyer's Proof of Funds, Seller's IOLTA counsel releases the logistics and cargo documentation.

    • The cargo is scheduled for loading and assigned a laycan window by the producing entity.

    • Seller nominates the carrying vessel and provides Q88 vessel particulars and estimated arrival details within two (2) banking days following confirmation of Buyer's Proof of Funds.

    • Under CIF terms, freight and marine insurance remain for Seller's account.

    • Buyer confirms the nominated discharge port, terminal details, and coordinates for vessel routing.​

  4. Loading Operations

    • Loading commences within the agreed laycan period at the designated export terminal.

    • During loading operations, Seller provides Buyer with:

      • Daily loading status reports;

      • Updated cumulative loaded volumes;

      • Fresh Certificates of Analysis covering product loaded each day.​

  5. Completion of Loading

    • Upon completion of loading, Seller provides Buyer with the following documents:

      • Full set of Clean On Board Bills of Lading;

      • Final independent inspector's Quantity and Quality (Q&Q) Certificate;

      • Final Certificate of Analysis (COA);

      • Final Commercial Invoice calculated on actual B/L quantity and Platts WTI assessment on the B/L date less USD $4.00 per barrel;

      • Title in Fact issued in Buyer's nominated company name;

      • Registered and paid producer invoice confirming ownership and transfer rights.​

  6. Payment

    • Within two (2) banking days after receipt and verification of the completed loading documents, Buyer remits 100% of the final Commercial Invoice value via MT103 wire transfer to Seller's designated IOLTA Attorney Trust Account.​

  7. Delivery

    • Seller completes shipment and delivery to Buyer's nominated Gulf Coast discharge port under CIF Incoterms® 2020.

    • Risk of loss transfers to Buyer upon loading at the export terminal flange, while Seller's marine insurance coverage remains in effect through discharge at the destination port.

    • Any subsequent shipments, contract extensions, or long-term supply agreements shall be negotiated separately and mutually agreed upon by both parties.

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Note: This transaction is structured as a documentary-backed CIF transaction with no upfront deposit required. Payment is made only after completion of loading and receipt of the full documentary package evidencing title, quantity, quality, and shipment of the cargo.

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