Industry: Energy Region: Iraq Transaction price: US$ 1 million Transaction method: equity investment
Project introduction:
I. (Transaction Mode)
(1) Basrah Medium, a trading oil product, is of the quality of Iraqi standard export crude oil.
(2) The total transaction amount shall be negotiated jointly by the buyer and the seller.
Second, the transaction price pricing rules
1. The basic pricing benchmark OSP (official selling price of Iraq) is based on the official selling price of Basra Intermediate crude oil in Asia in the month corresponding to shipment announced by SOMO, the national oil marketing organization of Iraq; OSP calculation anchor point: The arithmetic average ((Oman+Dubai) /2) of the average price of spot crude oil in Oman and Dubai in the current month of Platts Energy is used as the pricing benchmark.
2. Please contact for the discount agreed in the contract.
3. Price adjustment mechanism If SOMO in Iraq adjusts the official pricing mechanism, the seller shall immediately notify the buyer in writing; The pricing of both parties shall conform to the mainstream market of FOB Iraq loading port.
III. Payment transaction method (two options)
The buyer chooses one or the other to make payment.
Scheme 1: bank advance fund certificate MT199(POF)
The buyer's bank issued a certificate of full capital through MT199 message, covering the whole value of goods in the first month.
Select one of the two collection accounts:
1. Seller's account;
2. Upstream supplier account.
Option 2: Irrevocable Documentary Letter of Credit
1. Requirements of issuing bank: a bank recognized by the Central Bank of Iraq (CBI);
2. Choose one of the two types of letter of credit: (1) single irrevocable letter of credit for a single ship; (2) Automatic revolving confirmed letter of credit, with the revolving amount covering the total monthly shipment;
3. Limitation requirements: The letter of credit must be opened, confirmed and delivered to the seller at least 7 natural days before the ship's LAYCAN shipment date; The seller who fails to meet the standard has the right to refuse shipment, and all the delay losses shall be borne by the buyer;
4. Settlement path: After the documents (commercial invoices, bills of lading and other complete sets of documents) are submitted to the Central Bank of Iraq, the payment will be directly paid to the new york account of the Central Bank of Iraq;
5. Payment term: complete the full payment within 5 working days from the date of bill of lading; If it falls on a bank holiday in new york, it will be postponed to the nearest bank working day.