You should know that there is a part in the world that is known to be one of the top oil suppliers with a lot of reserves on their light crude oil. It is also considered as the top crude oil exporter in the world. There are about millions of oil barrels generated from that place every single day. NNPC is known to be the place’s end supplier of crude oil. The allottees, operators, or fiduciary agents are the terms that you might have heard about. These sets of traders are parts of NNPC. The NNPC will get their petroleum buyers from these set of traders, but you should know that it is not the only way.
You should know that if you are planning to buy petroleum from a oil supplier, you need to follow some procedures. These procedures are made to provide benefits to the buyer. Almost all of the buyers will be making the procedures that the sellers will have to follow in the comforts of their homes. You should keep it mind that the buyer will not issue the procedure, it is the responsibility of the seller. A lot of oil suppliers will have a room to negotiate the procedure, and this is where the buyer can take advantage of a more fair bargain. The NNPC will not allow their vessels to be loaded and keep waiting for the crude oil buyers. Every time the buyer and the oil supplier will have a deal, then that is the time that the vessels will be loaded.
Even though an SPA is signed by the buyer, the vessels will still not be loaded. The buyer cannot use the SPA as a proof that he or she will be able to pay for the petroleum. The vessel will not be loaded in your name since any person can sign the SPA. The thing that will be needed for the vessel to be loaded with the preferred quantity of oil by the buyer under his or her names is a POF or Proof of funds. If you pay attention on most of the written procedures by some buyers, you will find out that they will need the verification of the documents of loaded vessel after signing the SPA. This is a wrong move for most of the buyers.
That is why if you will be buying a petroleum from the top oil suppliers, you will need to follow the procedure from an end seller. You will not have to worry about nothing at all if you will follow the procedure made by the end seller. There are so many buyers that will complain about signing so many SPAs without the performance of the seller. There are two reasons behind this, the seller is not registered under the NNPC or the buyer did not show any proof of funds or POF.