In the present time The Nigerian National Petroleum Corporation (NNPC) is the Oil Corporation through which the federal government of Nigeria regulates and participates in the country’s petroleum industry. Any allocation given by the NNPC is limited and is distributed amongst exclusive agents who actually have all their allocation sold to specific buyers leaving a very small ratio to be sold to other buyers who are limited by the availability of any unsold stock or any defaulting buyer.

Our client, is a seller of BLCO who operated for more than 20 years in Nigerian and Ghanese waters, while having built a strong and solid relationship with small agents who are having small quantities that are not of interest for big players in this market. The arrangement and connection our client had made with these small agents is extremely effective and has proven its efficiency across these twenty years as it is unique and yet untapped.

The idea is simple, and is based on the fact of gathering the small allocation given to these small agents under one large ship that can take up to two million barrels (approximately 300,000 MT) every month and then selling the ship to the international players. This method is highly viable for two main reasons:

  • The small quantities once added constitute a respectable quantity that is of interest to international players, who do not want to go the hassles to gather these quantities which our client who is the undertaker, in this situation, is fronting as “SELLER”
  • The flow of small quantities does not stop as the small agents are always able to gather in average 5,000MT to 10,000MT every week, hence the consistency of supply is prominent.

The mechanism is straight forward, and based on trust as any other company or individual who try to execute the same shall be faced with two major issues: (1) hesitation of the agents on the performance and (2) skepticism of the agents about their re-payment in due time.

Our client was actually able to erase such problems and has established the methods applied since long time, as these small agents has given the products at a credit of forty five (45) days which are in simple terms: the large ship shall be parked in Nigerian waters for a period of two weeks maximum, whereas the small ships belonging to the agents shall bring the quantities they have of BLCO and upload on the board of the large ship while signing the contract showing the quantities of the offload, date and price agreed to be paid after 45 days.

Our client, shall be the sole seller and then shall following the period of two weeks bring the large ship to the Ghanese waters where it shall be sold on vessel to vessel to large players and shall remain in the Ghanese waters for another ten days maximum to allow the checks needed and to receive the proposal of the large players and their payment. Once the SGS report is issued, the buyer comes and (1) use the same large ship which shall be directed ASWP (any safe world port) or (2) shall bring the load to another ship rented by the buyer, decision remains in the buyer’s court.

While the ship is offloading its cargo of BLCO in the other ship or even it remains in the same large ship, and once the SGS report is completed the buyer/large player – must issue an MT103/202 to our client the Seller, hence the gap is covered, and within one month at maximum (30 days) a large ship of two million barrels is ready.

The ship cannot leave the Ghanese waters and sail away unless the seller is paid in his account – and the Mt103/202 has been fully entered and funds are free to be used, which the seller will use partially to pay the agents and then re-start the operation with the next ship.

Our client, benefits from the gathering of small allocations to make it a single large ship ready to be sold to interested buyers in the Ghanese Waters.


The Buyer, in this case yourself, shall issue an SBLC or a BG for a of one year and one day with an amount period equaling the first shipment quantity and agreed price, to the designated account in Nigeria, and sign a seller’s contract to buy the ship in the Ghanese Waters.

Once the SBLC or BG is issued to the seller and following the confirmation bank to bank within seventy two (72) hours – three days – the Seller our client shall move the large ship having the loads of BLCO, having been parked for two weeks, to the Nigerian Waters ready to sail to the Ghanese Waters, where you the buyer shall send the SGS team to do the related checks)

We propose to your estimated company, since you have mentioned your willingness to buy the quantities of BLCO, to issue the SBLC or the BG to the account of the seller in Nigeria and to receive the ship in the Ghanese waters where the SGS team shall complete all relevant checks and then you shall send the MT103/202 to the seller designated account as per a contract that we shall have signed between both parties in the case you have an appetite to pursue with this enclosed proposal

Regarding the price: and following the discussions, the price given to your company shall be minus seven United States Dollars (-7USD), you shall bear the payment of commissions to those representing to you as per back to back IMFPAs (Irrevocable Master Fee Protection Agreement)

Regarding timeline: the timeline from gathering the small ships to the big ship in the Nigerian Waters across two weeks and then sailing to Ghanese Waters where the SGS checks around ten days, in the meantime the MT103/202 is issued so all in all a period of thirty (30) days, hence the Seller can provide you with annual agreement.


for more details don’t hesitate to reach me out via:

  • Denis Isac
  • 00971568313390