D6 Virgin Oil For sale:Understanding D6 Virgin Oil Pricing and Transaction Procedures for Buyers
- Jose Pagan
- Jul 15
- 4 min read
The global oil market demands clarity and precision, especially when it comes to purchasing specialized products like D6 Virgin Oil. Buyers need to understand not only the pricing but also the detailed transaction procedures to ensure smooth and secure deals. This post breaks down the key aspects of D6 Virgin Oil pricing, trial lift volumes, commission structures, payment terms, and the step-by-step process buyers should follow to complete transactions successfully.
D6 Virgin Oil For sale:D6 Virgin Oil Pricing and Volume Details
D6 Virgin Oil is priced competitively in the market, with current rates around $1.30 to $1.26 per gallon. This price range reflects the quality and origin of the product, which in this case is Azerbaijan, a well-known source for high-grade oil.
Trial Lift and Volume Range
Trial Lift Volume: 100,000,000 gallons
Minimum Volume: 200,000,000 gallons
Maximum Volume: 800,000,000 gallons
The trial lift allows buyers to test the product quality and transaction process before committing to larger volumes. After a successful trial, buyers can proceed with contracts for volumes ranging from 200 million to 800 million gallons.
Commission Structure
The commission is set at $0.02 per gallon on the buy-side. This fee covers intermediaries and agents involved in facilitating the transaction, ensuring transparency and fairness in the deal.
Payment and Contract Terms
Understanding payment and contract terms is crucial for buyers to avoid delays and disputes.
Payment Terms: MT103 or Telegraphic Transfer (TT)
Contract Terms: Spot or trial lift followed by a 12-month contract after successful trial
Mode of Transaction: Tank to Tank Transfer (TTT) with dip and pay method
FOB Locations: Rotterdam, Fujairah, Houston, Jurong, or any safe world ports (ASWP)
The payment method MT103/TT is a secure bank transfer system that ensures funds are traceable and verifiable. The contract starts with a spot or trial lift agreement, which, upon success, leads to a longer-term 12-month contract.
Step-by-Step Transaction Procedure for Buyers
The transaction process involves several key steps designed to protect both buyer and seller interests. Here is a detailed walkthrough:
1. Buyer Issues ICPO
The buyer initiates the process by issuing an Irrevocable Corporate Purchase Order (ICPO). This document must include:
Seller’s working procedure
Seller’s banking details
Buyer’s nominated Tank Storage Agreement (TSA)
Company registration certificate
This step confirms the buyer’s intent and provides necessary documentation for the seller.
2. Seller Issues Commercial Invoice
Upon receiving the ICPO, the seller issues a commercial invoice for the product stored in tanks at the port. The buyer must:
Sign and return the commercial invoice
Provide an acceptance letter
This confirms the buyer’s agreement to the terms and product details.
3. Seller Presents SGS Report and Appointment Letter
The seller appoints a representative to present a fresh SGS (Société Générale de Surveillance) report, which must be less than 24 hours old. This report verifies the product quality and quantity. The buyer and their logistics team verify the report at the buyer’s tank terminal.
The buyer then issues a Tank Storage Receipt (TSR) in the seller’s name to allow immediate injection once the SGS verification is successful. The seller also inspects the buyer’s tank for injection readiness.
4. Confirmation and Documentation
After successful SGS verification, the seller provides the following documents:
Injection Permission Agreement signed by buyer and buyer’s tank farm
Authorization to sell and collect
Commitment to supply
Statement of product availability
These documents formalize the transaction and authorize the injection process.
5. Fresh SGS Report and Verification
The seller issues a fresh SGS report in the buyer’s company name, along with:
Quantity and Quality (Q&Q) Report
Injection Report
Authorization to physically verify the product in the seller’s tank (ATV)
Tank Storage Receipt (TSR)
The buyer uses these to conduct a dip test and verify the product physically.
6. Dip Test and Payment
The buyer performs a dip test on the product in the seller’s tank to confirm volume and quality. After verification, the buyer makes payment for the total product value via MT103-TT. This payment enables the injection of the product into the buyer’s nominated tanks.
7. Seller Pays Intermediaries
Once payment is confirmed, the seller settles all commissions and fees with intermediaries and subcontractors involved in the transaction.
FOB Locations and Their Importance
The Free on Board (FOB) locations are critical points where ownership and responsibility transfer from seller to buyer. The main FOB ports for D6 Virgin Oil include:
Rotterdam
Fujairah
Houston
Jurong
Any Safe World Ports (ASWP)
Choosing the right FOB location depends on the buyer’s logistics capabilities and proximity to their storage facilities. These ports are well-equipped for handling large volumes and ensuring smooth tank-to-tank transfers.
Practical Tips for Buyers
Verify Seller Credentials: Always confirm the seller’s legitimacy and working procedures before issuing ICPO.
Prepare Tank Storage: Ensure your nominated tank is ready and meets all requirements for injection and storage.
Review SGS Reports Carefully: SGS reports are the backbone of product verification; scrutinize them for accuracy and freshness.
Use Secure Payment Methods: MT103/TT payments provide traceability and security for large transactions.
Understand Contract Terms: Know the difference between spot/trial lift and long-term contracts to plan your procurement strategy.
Final Thoughts on Buying D6 Virgin Oil
Purchasing D6 Virgin Oil involves a clear pricing structure, defined volume ranges, and a detailed transaction process designed to protect both parties. Buyers who follow the outlined steps and understand the terms can secure high-quality oil at competitive prices with minimal risk.
This guide offers a practical roadmap for buyers entering the D6 Virgin Oil market. By focusing on transparent communication, thorough verification, and secure payment methods, buyers can build strong, reliable supply chains for their oil needs.
Take the next step by preparing your ICPO and ensuring your storage facilities meet the required standards. With careful planning and adherence to the process, your D6 Virgin Oil purchase can proceed smoothly and successfully. D6 Virgin Oil For sale
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