Concerned With Fraud In Crude Oil Selling? The reason why, for Buyers, getting the 2 per cent Performance Bond by the seller is the easiest & Surest Proof of a Genuine Seller
Legitimate studies have shown that, while nearly all supposed crude oil seller which goes to a potential crude buyer to obtain company, would more often than not abundantly forswear heaven and earth he, or even the crude oil he professes to be selling, is “absolutely trustworthy, trustworthy, genuine, authentic, and honest,” nearly all OBJECTIVE, CREDIBLE EVIDENCE offered, alternatively, gives an entirely contrary and contrary REALITY – particularly, the daunting majority of these supposed vendors and their offers (in deed, around the degree of 99.999999%, according to one report) are totally phony, bogus, deceptive or otherwise not genuine.
MASTERFULLY FORGED & FAKE DOCUMENTS ARE AT THE HEART ASSOCIATED WITH THE CRUDE/BUYING OFFERING RIPOFF BUSINESSES
The primary instrumentality wherein these deceptive people and crude “vendors” run or perpetrate their con online game, is the utilization of skillfully forged or false papers. These types of deceptive and phony “vendors” – or, about, the greatest masterminds which originate and stay behind the plan – are notorious for being master forgers and exceptional copiers each and every conceivable genuine refinery and government company papers associated with crude sales or purchases. In deed, according to professionals, so masterful only at that online game are these fraudsters, the papers they give you to potential purchasers tend to be so strikingly persuading and real-looking that they’re regularly plain tough, if not impossible, for pretty much all but the many competent of document authentication experts to instantly differentiate from the genuine and authentic ones.
Together report by the Fraud Check out International summed it, “Victims [of these types of fraudulence] tend to be persuaded of credibility of Advance Fee Fraud systems by the forged or false papers bearing evidently official Nigerian government letterhead, seals, including false letters of credit, repayment schedules and lender drafts.”
The U.S. State Department’s Bureau of International Narcotics and Law Enforcement matters, in a report called “Nigeria Advanced Fee Fraud,” defines the papers used by the Nigerian Advanced Fee Fraud (AFF) or 419 perpetrators, as “official-looking stationery with proper government seals, stamps, and signatures,” whoever high quality, it states, features “evolved through the years, from badly handwritten letters to much more professional items prepared on term processors. Word processors also allow AFF criminals to build more letters.” It adds the “AFF criminals feature university-educated professionals who will be the best in the world for nonviolent dazzling crimes.”
THE PRIMARY PROBLEM: INABILITY with BUYERS TO VERIFY SELLERS’ CLAIMS & DOCUMENTS
The overriding point is that, largely in consequence of the above mentioned truth, for severe international purchasers of Nigerian crude oil, the single most important & most tough and risky issue they confront in the wild market, is now the confirmation and verification of seller’s claims about having a traditional crude allocation and/or its existing availability, in addition to verification of proofs and papers submitted by all of them meant for those claims. For some purchasers, undertaking that task is normally dreaded and considered something fraught with massive risks and concerns that should only be threaded with all the maximum caution, in addition to greatest care and deliberation.
PURCHASERS’ “FAVORED” PROOF & PROOF REPUTABLE SELLER THESE DAYS – a 2% PB
Because confirmation and verification of these papers from vendors are so hard and dicey, many these types of international crude oil purchasers look for, therefore, to purchase ONLY from vendors who are able to supply all of them whatever they think about the safest, many tangible, & most effortlessly trustworthy type of evidence and proof credibility by a vendor. And what exactly is this “preferred” evidence and proof that many purchasers would rather have? It is merely this – the supply by a seller of a 2% Performance Bond (PB) to your buyer.
THE MOST COMMON VERIFICATION & CONFIRMATION APPROACHES
In short, the usual proofs and proof crude allocation and availability offered by vendors to prospective purchasers, is normally the supply to your Buyer of cargo’s EVIDENCE OF PRODUCT or POP. In a C.I.F. or F.O.B price, for example, the typical manner wherein an expected crude oil seller shows “proof” or proof to a potential buyer the Seller features a genuine crude allocation or crude open to offer, is actually for owner to deliver the buyer the EVIDENCE OF PRODUCT, in addition to buyer is asked to “verify and verify” the credibility with this by himself, and, upon that, the purchasers to issue their Bank Guarantee or Letter of Credit (or other repayment tool) to cover the acquisition price of the item at distribution.
Nevertheless issue with this specific traditional technique, is the fact that for many international crude purchasers, the average Nigerian seller’s POP (a myriad of papers that could range from the existing loaded vessel papers, existing Authority to Board (ATB) which was particularly given to your preliminary buyer (consignee) of crude in whoever title the vessel had been given, Certificate of high quality, Certificate of source, Cargo manifest, Vessel ullage report, Certificate of amount, Bill of lading, the majority Allocation Details, owner’s Authority to offer (ATS) from the NNPC, an such like), isn’t trustworthy or easily verifiable for genuineness. Like, the POP, which will be, in short, owner’s main document that is supposed to convince the buyer the seller actually has got the product being sold, might be showing that an owner of oil allocation or product features ownership of product since the precise time of the exchange, say, at a certain hour of time today. But yet, there isn’t any guarantee the product may possibly not have been offered to another buyer only hours, if not minutes, after that exchange, which the product is in fact nonetheless available in the market or distribution to your buyer.
“Many purchasers cannot accept Nigerian vendors’ proof of product (POP),” states Sam Nelson, a professional in crude exchanging practices in addition to composer of a primer about the subject. “As a result of this, they (the Buyers) want a tangible (real) proof of product. The customer would request the seller inspect the cargo and present a verifiable assessment report from approved agencies like SGS, Q & Q or Robinson International before they (the Buyers) will charter a vessel the exchange. It is because some alleged Nigerian vendors have false claim over products which never ever existed and so they would forge papers to present as POP. Nigerian market has got to be followed cautiously and all sorts of documentations thoroughly confirmed.”
Nelson adds: “Kindly cannot give any assessment money to your seller. Always pay the funds directly to the assessment organization when they have collected examples of the crude oil from the mama vessel for chemical analysis to confirm the standard and level of the crude within the vessel. Also, assert the ATB (Authority To Board) from the vessel for assessment originated from the captain of this vessel. Do not accept any papers as authentic in the event that you failed to confirm it from the captain of feeder vessel. Any documents from a Nigeria seller needs to be confirmed for credibility.”
MOST DOCUMENTS otherwise PROOFS with NIGERIAN SELLERS tend to be VIEWED WITH SUSPICION
In deed, today, equivalent dilemma of basic incapacity to definitively authenticate genuine crude allocation or availability, today pervades also situations in which “tangible, physical” POP assessment features supposedly been made. And some purchasers realize that also this cautionary guidance by Nelson, the purchasers should “insist the ATB (Authority To Board) from the vessel for assessment originated from the captain of this vessel,” would often not exactly work any longer in lots of situations today.
In a TTO price, for example, the simple fact of purchasers’ associates boarding the vessel to produce an “inspection” or “verification” of “loaded” vessel, is normally no further a warranty the exchange is always genuine or genuine. Nigerian con men and 419ers which run within the crude oil business, happen known to utilize deceptive vessel managers and captains or con men disguised as staff of Shell/JV terminal providers. And Vessels verified as “pregnant” (i.e., loaded) also by the buyer’s associates along with his appointed SGS inspectors welcomed ahead aboard the ship on a presumed ship “captain’s” ATB document, happen considered actually arranged by phony ship providers and ship managers and “captains”; plus these types of situations the buyer will simply be overtaking a ship and cargo with FAKE Charter Party contract executed amongst the buyer and phony ship manager, without AUTHENTIC ship owner’s endorsement and no authentic delivery papers. And once the buyer’s associates aboard the vessel confirms the vessel is “pregnant,” the buyer covers the cargo, gets control of the vessel, in addition to con men quickly split the funds and vanish. The customer losses everything because the genuine vessel owner never ever approved the captain to issue the CPA, in addition to important cargo delivery papers utilized in the exchange are typical merely phony.
Nigeria’s bureaucratic quagmire
And there’s just one more issue involved with trying to authenticate Nigerian crude oil papers. The issue of bureaucratic quagmire related to doing business in Nigeria. One specialist vastly experienced in performing crude oil purchasing company in Nigeria, put it in this manner to this author: “NNPC Crude Oil advertising division, Abuja, is the authoritative resource to confirm the Authority to offer document. However you will spend an endless length of time trying to confirm it. As with many Nigerian organizations, folks utilize individual connections getting these types of papers, but that does not signify they may be able provide.”
WHAT BUYERS then SEE SINCE THE IDEAL AND MOST “FAVORED” EVIDENCE OF A GENIUNE CRUDE SELLER – A SELLER WHO IS ABLE TO OFFER BUYER A 2% OVERALL PERFORMANCE RELATIONSHIP
In a nutshell, the point is that almost all traditional ways of confirmation and verification of crude oil ownership and availability became seriously infected and adulterated by people and phony providers to the point that numerous international crude oil purchasers respect those practices as largely unreliable, too hard to confirm, and fraught with intolerable risks. And therefore, there’s developed among them what could now be called a “preferred” way of determining a traditional and legitimate seller of crude oil these days. These types of a seller is actually person who can satisfy one basic requirement – particularly, is prepared and able to give you the buyer a 2% Performance Bond upfront in a transaction.
Something an Efficiency Bond or PB?
It is, in short, an insurance coverage document given the seller by seller’s lender or insurance carrier guaranteeing the issuer will pay a stipulated amount (an amount amounting, in cases like this, to 2% of total value of the cargo being bought) to your buyer in case owner breaches (fails to perform) the terms and details of contract signed by the seller with all the buyer. (The Performance Bond could also be posted in the form of a Cash relationship). The bank or insurance carrier which issues the PB will act as the responsible “surety” of relationship
If a vendor contracts with a purchaser to put up a 2% PB – and is able to actually post that relationship together with lender or insurance carrier – owner is, in short, guaranteeing the buyer that when he had been to fail to perform his obligations under that contract, his lender or insurance carrier, inside their functions while the “surety” of relationship, will pay the buyer an amount amounting to 2% of value of the crude being bought, irrespective.
WHY BUYERS ADORE THE PERFORMANCE BOND GUARANTEE
Purchasers love finding vendors who are able to supply all of them UPFRONT 2% Performance Bond, overwhelmingly watching that while the “preferred” option as they think about the safest, most efficient, many tangible, & most assured and the very least fraud-prone type of evidence and proof credibility by a vendor. Many professionals contend that when a vendor can provide a 2% PB price – and, what exactly is even more essential, is in fact able to post the PB because he has the monetary wherewithal to do this – it’s practically assured the seller cannot fail the buyer within the real execution of price, but will practically clearly perform those obligations as contracted with all the buyer.
Sam Nelson, specialist in crude exchanging practices in addition to composer of a primer about the subject, put it in this manner: “a contract with any of these bonds set up are effectively completed. A bonded contract features a higher level of success than a non-bonded contract. A bonded contract is a bankable contract. The players have their funds at risk which is a very good reason in order for them to perform.”
Additionally the Legal Dictionary describes it in this manner: “The purpose of a bond is always to supply a motivation the fulfillment of a responsibility. Moreover it provides reassurance the obligation are fulfilled which payment can be obtained if it’s not fulfilled. Performance Bonds guarantee the satisfactory completion of a project.”
There are some specific basics why purchasers and professionals believe that means:
1. Having the ability to post a PB is a sign of monetary credibility and capability.
To be able to finance an actual publishing of a 2% PB (that may imply, for example, at existing crude rates, 2% of, say, $200 million for a 2 million barrels cargo, something amounting to $4 million), a vendor will have to involve some substantial monetary capability and resources.
2. Financial price and Penalty involved with publishing a PB, is a Powerful Disincentive not to ever Perform.
Sam Nelson: “The players have their funds at risk which is a very good reason in order for them to perform.” In deed, many purchasers, upon getting the 2% PB issuance from a seller, would immediately accept that as equivalent to POP and forgo being forced to review the POP.
3. The Normal Con guy or 419er won’t have the personality, the character & Financial Wherewithal to publish a PB.
Robert Strickland of Strickland Associates, an experienced New York dealership in crude oil discounts, states the following: “if you should be concerned with FRAUD! ONLY real Sellers that provide a 2%+ Performance Bond are genuine Sellers of Nigeria [crude oil].”
Sam Nelson, the crude oil discounts specialist and writer: “These bonds are necessary to protect the interest of parties involved for unnecessary losings because of fraudulence or total negligence.”
4. Having the ability to post a PB is a solid sign to a purchaser the Seller has already been vetted.
Getting a PB is normally maybe not an easy or automated thing. Before a bank or insurance carrier would give a vendor a bond, owner shall have gone through a rigorous application process, and will need to have met some stringent monetary and character requirements and problems. Thus, whenever a buyer gets a seller who are able to, and does actually, post a 2% PB, the buyer is practically assured he’s got a credible seller, plus one many unlikely to be a fraudster or a 419er.
For just an illustration, one Syracuse, New York, insurance carrier needs people for a Public Construction job PB to deliver all of them here items, among others:
Surety survey Filled Out Completely
Copy of Contract/Award Letter or Solicitation Letter
Business Financial Statements (two years audited fiscal 12 months financials) OR
Last 36 months business tax Returns
Personal Financial Statements and Resumes on all people who own 10% or more
Work in Progress Plan (if applicable)
insurance coverage Confirmation
A. Workman’s Compensation
B. Liability Certificate
C. Key guy Policy
Supplier and Contractor Reference Letters
Schedule of done Jobs
Bank Reference Letter
Company and Personal Indemnification (GAI we supply)
Articles of Incorporation
Job price Breakdown and/or bid specs
To the majority of purchasers of crude oil within the international open-market, getting an UPFRONT 2% Performance Bond issuance from a vendor, is the overwhelmingly “preferred” way of performing a sales/purchase price. It’s the option they think about to be the safest, most efficient, many tangible, & most assured and the very least fraud-prone type of evidence and proof credibility by a seller.
For assorted factors and elements, many of which are outlined above, many purchasers and professionals believe that if a vendor can provide a 2% PB price – and, what exactly is even more essential, is in fact able to post the PB because he has the monetary wherewithal to do this – it’s practically assured the seller cannot fail the buyer within the real execution of price, but will practically clearly perform his very own obligations as contracted with all the buyer. Thus, in a deal of this kind the buyer features little or absolutely nothing to bother about regarding a potential danger of fraudulence or scam. In effect, purchasers love finding vendors who are able to supply all of them – who are able to actually post – a 2% PB, and think about that to be top proof and assurance of experiencing a credible seller, plus one many unlikely to not perform the contract, or to be a fraudster or a 419er
NOTE: much like a lot of things regarding numerous a Nigerian crude seller, it’s one thing for a vendor to claim to a purchaser he’ll post the PB, but quite another thing completely the seller to really do it, or to really do it!),.
FOR A FOLLOWUP
YOU WANT TO FOLLOW THROUGH HOW YOU CAN ASSURE GETTING A NIGERIAN CRUDE OIL SELLER WITH A REAL, UPFRONT 2% OVERALL PERFORMANCE BOND? otherwise SELLER WITH OTHER TYPES OF BUSINESS DEALS THAT ARE GENUINE, “SAFE” AND SCAM-FREE?
INSTRUCTION: can help you so. You can easily have the specific basic requirements you had want to satisfy for you to become immediately considered “proven” as a LEGITIMATE seller which truly genuinely has some crude to market. USE THE AUTHOR’S FIVE FUNDAMENTAL OPTIONS SYSTEM.
Only send an email and simply request “the FIVE OPTIONS.” CONTACT THE WRITER ABOUT THIS ONLY with E-MAIL, PLEASE, at: email@example.com otherwise firstname.lastname@example.org
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