Fraud in Nigerian Crude Oil Promoting: Authenticating The Crude Allocation and Paperwork by Oil Patrons

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HOW DO YOU ASSURE THAT A NIGERIAN CRUDE OIL SELLER’S ALLOCATION OR DOCUMENT IS AUTHENTIC OR GENUINE?

This statement by the analysis report on the topic, accomplished by the Africans in America Information Watch, a New York primarily based non-profit group, in August 2010, sums up the problem:

“There are many genuine crude oil sellers in Nigeria but the problem is getting the real and verifiable ones. Crude Oil trade is a booming and thriving business and many people seem to want to go into it. Buyers from other countries contact sellers in Nigeria in order to buy Nigerian Crude Oil. [But the business is now full of]… scammers on the prowl.” It provides that “There are lots of crude oil sellers in Nigeria, but the challenge there is the ability to find genuine and verifiable sellers.”

In reality, as this writer has amply documented elsewhere in one other research, the assertion that within the arcane world of worldwide crude oil shopping for and promoting at this time the panorama is actually littered and crawling with fraudsters and scammers, is now a well-established, well-settled fact about which there can hardly be any critical argument or disputation within the up to date worldwide oil shopping for and promoting business.

In consequence, on condition that stark REALITY that “there are many genuine crude oil sellers in Nigeria but the problem is getting the real and verifiable ones,” the massive million greenback query is that this: AS A CRUDE BUYER, HOW THEN DO YOU GET THOSE SELLERS FROM AMONG THE WHOLE LOT WHO ARE THE “REAL AND VERIFIABLE” ONES?

THE KEY? Most consultants, within the case of Nigeria, say that principally you (the crude purchaser) must demand and demand on the purported Vendor displaying you AUTHENTIC documentation and different proofs of getting real BLCO and FLCO allocation from the Nigerian NNPC, in addition to proof that that product continues to be at present availability. (For Nigeria, the NNPC, which stands for the Nigeria Nationwide Petroleum Company, is a Federal government-owned firm that administers the shopping for and promoting of petroleum, together with giving allocation to real sellers of the crude oil in Nigeria).

THE KEY DOCUMENTS IN NIGERIAN CRUDE OIL BUYING/SELLING INDUSTRY

There are some key paperwork which might be essential within the buying of the Nigerian crude oil transactions. They are going to embody the next paperwork, amongst others:

– Vendor’s delivery paperwork, akin to: Clear Ocean Invoice of Lading; Vendor’s Industrial Bill

– Vendor’s Proof of Product (will comprise the License to Export & the Approval to Export, issued by the nation’s authorities, assertion of Availability of the Product, Port Storage Settlement, and so forth)

– SGS/Sayboat Certificates of Amount and High quality issued on the loading port

– Certificates of Origin issued by the NNPC

– Certificates of Authenticity issued by the NNPC

– Constitution Celebration Settlement on the vessel, issued to the charterer of the vessel and presumably displaying that the vessel is definitely chartered within the designated Vendor’s identify

– the Q88 questionnaire, crammed out by the managers of the vessel offering the related data and specs of the vessel;

– And so on.

PROOF OF PRODUCT

Most likely a very powerful doc of all crude purchaser could must see from the vendor, is the correct Proof of Product (POP). This doc, which needs to be one issued by the suitable division of the NNPC in Abuja, Nigeria, serves as a transparent indication to a crude purchaser that the proprietor of the oil commodity has true possession of the product, and in addition serves as a sign that, at the least as on the time of the transaction (however solely at the moment), the vendor has the commodity out there on the market.

IMPORTANT: It shouldn’t simply be any type of POP, nonetheless. It must be one that’s in a format that may allow passable verification to determine that it’s legitimate and genuine. Primarily based on this author’s analysis, to make sure the optimum probability that this aim might be attained, there are principally two forms of POP paperwork which might be acceptable, and none others, and solely sellers whose POP paperwork meet these “preferred” POP paperwork requirements, should be entertained or attended to.

THE POP MUST MEET THE FOLLOWING CONDITIONS.

A). It will need to have the Loaded vessel paperwork which might be CURRENT (that’s, should not be greater than 2 days previous, in any other case the doc will instantly be rejected as it might imply that the vessel is not out there), and will embody the next paperwork:

i. A Present Authority to Board (ATB). Vendor should present, for the customer’s inspection, the ATB that was particularly issued to the preliminary purchaser (consignee) of the crude in whose identify the vessel was issued. The identify on the ATB should match precisely with the identify on the POP and different paperwork named right here. And, right here once more, the ATB MUST be CURRENT – that’s, it have to be not more than 2 days previous. (An ATB that’s greater than 2 days previous, must be robotically be seen as representing a vessel which is not out there and therefore not acceptable).

ii. Certificates of high quality.

iii. Certificates of origin

iv. Cargo manifest

v. Vessel ullage report

vi. Certificates of amount.

vii. Invoice of lading

viii. ATS (Authority to Promote) from the NNPC

B) PROVIDE THE PARTICULARS OF THE VESSEL.

Usually, the Purchaser could require (and therefore the Vendor have to be prepared and able to launch them), vessel particulars akin to the next: the identify of the vessel, location of the vessel, the IMO identify, name signal and different vessel particulars. The explanation that is required is so the customer can do the monitoring of the mentioned loaded vessel, and to determine its present availability.

C) PROVIDE THESE DOCUMENTS, ALSO, FROM THE NNPC

As within the case of the POP which respected patrons’ facilitating outfits just like the Dependable Dealings Worldwide require from any AWR vendor earlier than they will start to do enterprise with them, the opposite issues which will usually be required from a vendor, would come with the next:

= the Lifting Lease/License from the NNPC, and

= the Letter of Authority to Promote (ATS) from the NNPC. The Letter of Authority to Promote, additionally referred to as a Letter of Allocation, which ought to normally come from the NNPC’s Crude Oil Advertising Division, is principally the official doc which exhibits the customer that the vendor really has the authority from the official authorities company for the crude product that he is promoting. (Should normally be in a paper format and on NNPC firm letterhead; should include the date of problem and expiration date, and be signed. Scanned copies of doc are alright. All paperwork have to be licensed, legitimate, genuine and verifiable.)

= If, for instance, the vendor claims that the cargo has been cleared, then he ought to normally be capable to present the CPA (Constitution Celebration Settlement), the ATL (Authority To Load), and Q88 vessel particulars.

ALRIGHT, BUT HOW DO YOU ASSURE THAT THESE DOCUMENTS ARE AUTHENTIC?

OK, so for example you have assembled the correct Proof of Product and the opposite important paperwork akin to these which might be outlined above. There’s one key, in deed vital, query that also stays for you – how do you guarantee that these paperwork you have gotten from the vendor are even any good? That they’re actual, legitimate, AUTHENTIC and GENUINE to warrant your taking the Vendor’s provide significantly?

This query is, maybe, usually essentially the most vital for a purchaser as a result of, as a rule, most fraudsters and con artists who function within the Nigerian crude oil business, are merely masterful forgers and copiers of each little bit of the reputable business paperwork which might be utilized in promoting and shopping for operations by refineries and authorities businesses, and who’re extremely expert on the craft. Consequently, patrons are strictly cautious by no means, ever to simply accept outright at face worth or be ever fooled by, any doc submitted by sellers or claims made by them, nonetheless seemingly convincing or real-looking!. And what all of it means, is that one essential facility crude oil purchaser and his aides should shortly develop and have, are some good, fool-proof, instruments or expertise by which they will INDEPENDENTLY VERIFY the authenticity of at the least the important thing, most vital items of paperwork from among the many tons of paperwork that sellers and their brokers will usually current them in the middle of hawking their merchandise. And, above all, that they will need to have the abilities and the data and enterprise sophistication to have the ability to detect which of them amongst such paperwork are real and bonafide, and which of them is perhaps plain bogus.

To make certain, making such verification and affirmation could usually be problematic for a purchaser. Nonetheless, it’s not actually that troublesome a job, at the least for the schooled and skilled eyes. You solely must know what and what to search for, the proper inquiries to ask, and how you can counter test and cross test information and data. And, in any case, every time in critical doubt in regards to the authenticity of a doc, you need to all the time take the trail of warning – ask for extra proof, and even reject the provide, relying on the actual information at problem in a suggestion.

FOR A FOLLOW UP

YOU WANT TO FOLLOW UP ON HOW YOU CAN ASSURE THAT A NIGERIAN CRUDE OIL SELLER’S ALLOCATION OR DOCUMENT IS AUTHENTIC OR GENUINE?

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