Many agents that said their buyers were having a problem getting real sellers and buying Nigerian crude oil.
Much of the problem lies in the fact that Nigeria has reached their OPEC quota and can not sell new contracts for crude oil without exceeding its OPEC quota.
Regardless, Nigeria has been doing so for many years.
It is a very private marketplace.
Nigeria sells a portion of its production off-OPEC, all thru small, invisible private sellers that have been secretly given the authority to sell as consignees for the NNPC. They all have their own banks (approved by NNPC) and are required to make cash payments for their sale to a rotating set of banks the NNPC uses from time to time.
But this introduces the opportunity for those with different ideas to enter the invisible marketplace with more questionable intentions and concerns of money laundering therefore changes are being made by NNPC to make all sales clear and transparent.
In addition, the oil business is a rather cash intensive business requiring large quantities of money that even most large companies can not get their hands on. So the potential of failure to perform both on the buy side and the sell side is much higher than many other natural resource markets.
The AluminumNow Group works to assist just a small number of sellers that are already performing with other buyers and have been doing so for many years.
Because of this, these sellers will not be pushed into contracts or procedures suggested by buyers. The sellers set procedure not the buyers
Our group, AluminumNow serves these sellers as the marketing arm, mandate and power of attorney (occasionally) to filter through literally hundreds of potential buyers to find the ones that are most likely to be financially capable and are also agreeable with the sellers working procedures and price.
We believe that our efforsts are solving the buyer’s problem. To do so we try and find out the buyer’s needs and designs at getting product and then solve those challenges.
The AluminumNow Group does this by introducing a safe procedure for the buyer to be able to move forward.
In a general sense, nothing is verifiable prior to the lift in the off-OPEC Nigerian market so we do our best to make sure the SPA meets the buyer's requirements and if the procedure in the SPA is followed the business is strictly bank to bank and provides for the issuing of the required bank Instrument(s) prior to loading product or accessing a loaded tanker. It is noted that there payments the buyer is required to make to his own bank for their participation.
This method tends to favour more financially capable buyers and requires greater banking participation for the less qualified buyers.
Please go to our registration page to enter the process.
Information provided by the AluminumNow Group and is for information only as the procedures are changing.