Focus on Trading

ALTHEA PETROLEUM S.A, expects full transparency from potential Buyers. Transparency and credibility can be proved by documents provided for the Buyer at the very beginning. These documents can be easily verified and can prove that ALTHEA holds the title to all offered products, export licenses and other necessary documents. This means that throughout the process both Buyer and ALTHEA are obtaining more credible information about each other. ONLY DOCUMENTS BE EXCHANGE TO END BUYER NOT MANDATE AND/OR LEGAL ATTORNEY. The BUYER will need to go through our DUE DILIGENCE PROCESS and PROVIDE HIS/HER REDINESS TO PURCHSE AND GOOD STANDING VIA THEIR BANK.

The entire process from exchange of necessary document up to the signature of the Sale and Purchase Contract is being realized in copy with us, ALTHEA PETROLEUM S.A.. Buyer is obliged to keep us informed about the course of the transaction until the product is delivered to the port of discharge and payment is realized.

POP - Proof of Product (set of documents that serve as a Seller's proof that the product is real)

Partial Proof Of Product (PPOP) Documents typically consist of

SGS Inspection Report or equivalent (SGS)
Dip Test Analysis Report (DTAR)
Certificate of Origin (COO)
Tank Storage Receipt (TSR)

Full Proof Of Product (Full POP) are sent by Secured Mail to the Buyers Bank / Buyer and typically consist of:

Copy of License / permit to export, issued by the department of the ministry of energy (If applicable)
Copy of statement of availability of the product
Copy of the refinery commitment to produce the product
Copy of the pipeline corporation contract to transport the product to the loading port
Refinery certificate of product
Copy of the port storage agreement (TSR - If applicable)
Dip Test Authorization letter (DTA)
Copy of SGS or equivalent report (SGS)

Prices and Discounts

There are two ways to price products and both mechanisms has its positive and negative sides:

Fixed price offerings in US$/MT or US$/bbl which is usually offered for the first 12 months contract period and subject to review on yearly basis
Formula based pricing linked to Platt’s prices around loading dates LESS an agreed discount

Offers usually indicate a gross discount and a net discount to Buyer from Seller. The difference between the two is commission to be shared 50/50 between the brokers (Buyer’s side and Seller’s side).

Note: the most important element in the transaction are the procedures and this is where 99.9% of all deals fail to materialize. A careful review of procedures will reveal areas that are usually not workable for either side. If this cannot be overcome then all negotiations fail.

Following links for pricing information are considered by most of our sellers to be the closest estimate of their invoicing prices. The invoiced prices are typically based on the three-day average (the day upon loading, preceeding day and the following). Seller uses the actual price on the basis of NWE Platts.

All prices for the Buyer are according to Platt's European Marketscan MINUS discount. The amount of the discount is not fixed, but varies according to:

ALTHEA can offer to Buyer a very competitive discounts from Platts pricing. Exact pricing and discount will be solved directly during discussion between buyer and seller. Commissions for the beneficiaries are always paid by the Buyer accoridng to NCNDA/IMFPA signed by the Buyer along with Contract/SPA. Buyer does not pay any Seller-side fees.

Commissions are payable ONLY to mandate any introduction and/or referral fees will be pay by ALTHEA and will be dsicuss prior to engage with referral client the referral fee applies only TWICE if is a monthly contract and ONCE if is a SPOT deal. AND ONLY IF THE TRANSACTION CLOSES THE REFERRAL FEE IS PAYABLE.