Much of the time it takes to close a petroleum purchase depends on the capabilities and expediency of the buyer. We only work with RWA Buyers, so things generally flow very smoothly and expediently. However, if a buyer engages for a sale and, for example, doesn’t have a standing storage/logistics relationship or cannot provide a TSR as proof there is somewhere for the product to be stored after purchase, this slows down the transaction exponentially.
We provide our expected standard timeline below for your review:
- Buyer sends ICPO to Seller on receipt of SCO including Buyer’s banking information, CP, Business Registration, Passport, and Buyer’s TSA as proof of Buyer’s Storage Availability. (24 hours)
- Seller issues Commercial Invoice (CI) directly to Buyer. Buyer signs CI and returns to Seller for TSR with minimum 5 days leased. (72 hours)
- Seller issues Conditional DTA letter to be signed by all parties including buyer’s Tank Farm. (Three signatures required: Seller, Buyer and Tank Farm Agent). (48 -72 hours)
- Seller issues Final DTA, fresh SGS, TSR, and Title Documents to the Buyer. (48 – 72 hours)
- Buyer conducts Dip Test in Seller’s tank & injection commences to Buyer’s tank. (12 hours)
- Within 24-48 hours Buyer makes 100% TT payment via MT103, Seller changes ownership title to Buyer. (24 -48 hours)
- Seller issues 12 months contract to be signed with all parties including NCNDA/IMFPA. (36 – 72 hours)
If you are financially and logistically ready to purchase, you can reliably expect the above timeline for your initial purchase. Naturally, once you are an established client and under contract for regular deliveries, things move along according to the contracted schedule.