NBG Tier 1 D6 Virgin Oil Price and FOB Transaction Procedure
- Jose Pagan
- Jul 31
- 9 min read
A large fuel transaction can look simple on one page: product, price, quantity, port, payment, inspection, and procedure. In practice, every line has to match the documents, the tank position, the payment instrument, and the compliance checks before a buyer or seller should move.
This guide organizes the stated NBG Tier 1 Fuel Source offer for D6 Virgin Oil into a clear commercial summary and a practical FOB transaction flow. It is written for informational use only and should not replace independent legal, trade finance, compliance, or inspection advice.
Commercial summary of the D6 Virgin Oil offer
The stated offer sets out a high-volume D6 Virgin Oil supply arrangement with pricing by gallon, U.S. origin, FOB terms, SGS inspection, and a buyer-side commission.
Term | Stated detail |
Product | D6 Virgin Oil |
Price per gallon | $1.40 / $1.36 |
Trial lift | 200,000,000 gallons |
Minimum quantity | 400,000,000 gallons |
Maximum quantity | 800,000,000 gallons |
Commission | Buyer-side, $0.02 per gallon |
Origin | USA |
Delivery or loading ports listed | Vladivostok, Rotterdam, Houston ports |
Incoterms | FOB |
Payment terms | T/T wire transfer and MT103 |
Inspection | SGS |
Source description | NBG Tier 1 Fuel Source |
The price line, $1.40 / $1.36 per gallon, should be clarified before any ICPO is issued. In many fuel offers, dual prices can refer to trial versus contract pricing, gross versus net pricing, or a stated spread between buyer and seller sides. The parties should define this in writing on the commercial invoice, SPA, or offer sheet.
The quantity range is significant. A trial lift of 200,000,000 gallons is already a major transaction. The stated minimum of 400,000,000 gallons and maximum of 800,000,000 gallons suggest that the seller expects a larger contract after the first successful lift. That makes document control and proof of product especially important.
The commission term also needs clear handling. A buyer-side commission of $0.02 per gallon can become a large amount at these volumes. The NCNDA/IMFPA should identify the protected paymasters, beneficiaries, payment timing, and paying side before funds move.
What FOB means in this transaction
FOB means Free On Board under Incoterms. In a standard FOB sale, the seller delivers the product when it is loaded on board the nominated vessel at the named port of shipment. Risk usually transfers from seller to buyer once the product passes the ship’s rail or is placed on board, depending on the applicable Incoterms version and contract wording.
For this reason, the named FOB port matters.
The offer lists Vladivostok, Rotterdam, and Houston ports. That creates a point that should be resolved early. Houston and Rotterdam are common petroleum trading locations. Vladivostok brings different routing, compliance, and sanctions considerations. If the origin is USA, the parties should confirm whether the named port is the loading port, storage location, transshipment point, or destination reference.
A clean FOB file should make these items unambiguous:
Named FOB port
The contract should state the exact port and terminal where delivery occurs.
Tank location
The seller’s tank reference should match the port, terminal, and tank farm documents.
Loading method
The contract should state whether the product moves by tank-to-tank injection, vessel loading, pipeline transfer, or another approved method.
Export documents
The seller should identify which export documents will be transferred with title.
Compliance checks
Both sides should screen all parties, vessels, banks, ports, and routes.
FOB can protect both sides when the responsibilities are clear. It can also create disputes if the parties use FOB language while actually expecting a tank-to-tank transaction inside a storage terminal. The procedure should match the Incoterm.
Key documents in the stated working procedure
Fuel transactions use short document names that can make the process look faster than it really is. Each document has a role, and each one should be checked for consistency.
ICPO
The Irrevocable Corporate Purchase Order is issued by the buyer and addressed to the end seller through the seller’s representative. It sets out the buyer’s intent to purchase under stated commercial terms.
A strong ICPO should include the buyer’s legal name, product, quantity, price, port, payment method, inspection terms, and authorized signatory. It should not create payment risk before proof of product is verified.
CI
The Commercial Invoice is issued by the seller. In this procedure, the buyer signs and returns it together with the buyer’s Tank Storage Agreement.
The CI should match the offer terms exactly. Product name, quantity, price, commission handling, port, and payment timing should not conflict with the ICPO.
TSA
The Tank Storage Agreement shows that the buyer has tank storage available. The procedure asks the buyer to return the signed CI with the buyer’s TSA.
Buyers should verify that the tank farm is real, accessible, and able to receive the stated product and volume. The storage term should cover the expected timeline for dip test, injection, and title transfer.
PPOP
The Partial Proof of Product package is intended to give the buyer early evidence that the seller controls or has access to the product. In this procedure, the seller provides several PPOP documents.
These include:
Product Passport
This is the product analysis report. It should identify quality parameters and product specifications.
Authorization to Verify
This permits verification by email or phone with the relevant party.
Commitment Letter to Supplier
This supports the seller’s supply arrangement.
Authorization to Sell and Collect
This supports the seller’s authority to sell the product and receive payment.
Tank-to-Tank Injection Agreement
This is signed by the buyer and tank farm to permit injection into the buyer’s tanks.
SGS report
An SGS inspection report is used to support product quality and quantity claims. SGS is a known inspection company, but any report should still be verified directly through proper channels. A copied PDF alone is not enough for a transaction of this size.
DTA
The Dip Test Authorization allows the buyer or buyer’s appointed inspector to conduct a dip test in the seller’s tank. The stated procedure calls for an unconditional DTA after the SGS report and injection report.
An unconditional DTA is valuable only if the tank farm confirms the authorization and grants access under its own rules. The buyer should check the DTA with the tank farm before relying on it.
TSR
The Tank Storage Receipt confirms storage availability or product receipt in a tank. In this procedure, the buyer provides a TSR within 24 hours after a successful dip test in the seller’s tanks.
The timing should be realistic. The buyer’s tank farm must be ready before injection begins.
NCNDA/IMFPA
The Non-Circumvention, Non-Disclosure Agreement and Irrevocable Master Fee Protection Agreement protect intermediaries and define commission payments. The stated procedure signs these after successful dip test.
The document should define buyer-side and seller-side commission payments clearly. It should also state when intermediaries are paid, by whom, in what amount, and through which bank route.
Step-by-step FOB Rotterdam or Houston working procedure
The stated working procedure can be read as an eight-step transaction flow. Each step should be completed in sequence and verified before the next step begins.
1. Buyer accepts the seller’s procedure and issues ICPO
The buyer reviews the seller’s procedure and accepts it. The buyer then issues an ICPO addressed to the end seller through the seller’s representative.
At this stage, the buyer should check that the ICPO does not conflict with internal board approvals, procurement limits, banking rules, or compliance policy. The ICPO should reflect the exact product and quantity requested.
2. Seller issues the commercial invoice
The seller issues the CI. The buyer signs and returns it with the buyer’s TSA.
This is the first point where both parties should compare the commercial documents line by line. The price, commission, port, quantity, inspection method, and payment route should all match.
3. Seller provides PPOP
The seller provides the PPOP package. This includes the Product Passport, ATV, Commitment Letter to Supplier, ATSC, and TTIA.
The buyer should verify each item through independent contact points. Verification should not rely only on phone numbers or emails supplied inside the same document package.
4. Seller provides SGS report, injection report, and unconditional DTA
The seller supplies the SGS report, injection report, and unconditional Dip Test Authorization.
This is a critical point. The buyer should verify the SGS report with the inspection company and confirm the DTA with the tank farm. The injection report should identify product, tank, volume, date, and terminal reference.
5. Buyer completes dip test and provides TSR
After a successful dip test in the seller’s tanks, the NCNDA/IMFPA is signed. The buyer then provides the TSR within 24 hours.
Once the buyer’s tank storage is confirmed, the seller proceeds with tank-to-tank injection and provides the injection report showing that the product has moved into the buyer’s tanks.
The dip test should confirm both quantity and quality. If the results differ from the Product Passport or SGS report, the parties should pause and resolve the discrepancy before payment.
6. Buyer pays by MT103 and seller transfers title
The buyer makes payment for the total cost of the injected product through MT103. The seller then transfers title ownership to the buyer with all export documents required for the transaction.
MT103 is a SWIFT customer credit transfer message used between banks. It is not the same as cash already received. The seller should confirm cleared funds according to the contract, and the buyer should receive clear title and export documents as agreed.
7. Seller pays intermediaries and prepares contract
After the first lift is completed, the seller pays all intermediaries involved in the transaction. The parties then proceed to sign a larger contract.
This matches the commercial logic of a trial lift. The first lift proves product availability, payment ability, tank access, inspection process, and document coordination.
8. Buyer and seller pay their respective sides
The procedure states that the buyer pays the buyer side, and the seller pays the seller side at the same time the buyer pays the seller for fuel.
This should be written into the IMFPA and payment instructions. Commission disputes often arise when the fee structure is discussed informally but not documented with bank-ready details.
Practical checks before signing or wiring funds
A transaction involving hundreds of millions of gallons needs more than a signed invoice. The buyer and seller should complete basic checks before moving to payment.
Verify the counterparty. Confirm the legal entity, registration, authority of signatory, and beneficial ownership where required.
Confirm the product location. The tank farm, tank number, terminal, and named port should match across the CI, DTA, SGS report, TSR, and injection documents.
Check sanctions and export controls. This is especially important when any route, port, vessel, bank, or counterparty may involve restricted jurisdictions or sanctioned parties.
Use independent verification. Inspection reports, tank documents, and bank details should be verified through independent channels, not only through contacts provided by a broker.
Review payment language. T/T wire transfer and MT103 should be tied to clear triggers, such as successful dip test, completed injection, and title transfer.
Clarify price basis. The $1.40 / $1.36 per gallon line should be explained in the contract. The parties should know which price applies to the trial lift, contract lift, gross price, net price, and commission.
Match Incoterms to the physical flow. If the transaction is truly FOB, the delivery point and risk transfer should match FOB practice. If it is tank-to-tank inside a terminal, the contract should describe that clearly.
Common risk points in D6 Virgin Oil FOB transactions
Large fuel deals often fail because one document is treated as proof of everything. That is risky. Each document proves only what it is designed to prove.
A Product Passport does not prove current ownership. A TSA does not prove product exists. A DTA does not prove the seller can transfer title. An MT103 copy does not automatically prove usable funds have cleared. A commission agreement does not replace a sales contract.
The safest process is layered. Product, tank, authority, inspection, payment, and title should each be verified in their own way.
A clean fuel transaction is not built on one impressive document. It is built on documents that match each other, confirm through independent channels, and support the actual movement of product.
For the NBG Tier 1 D6 Virgin Oil Price and FOB Transaction Procedure, the main risk points are the size of the trial lift, the multiple listed ports, the dual price line, and the timing of payment after injection. None of these is automatically a problem, but each one should be clarified before execution.
A clear takeaway for buyers and intermediaries
This offer presents a structured D6 Virgin Oil transaction with a stated price of $1.40 / $1.36 per gallon, a 200,000,000-gallon trial lift, FOB terms, SGS inspection, and payment by T/T wire transfer through MT103. The procedure follows a familiar path: ICPO, CI, TSA, PPOP, SGS, DTA, dip test, TSR, injection, payment, title transfer, and commission settlement.
The next step should not be speed. It should be clarity.
Before any party signs binding documents or sends funds, the commercial terms, port, price basis, inspection method, tank access, payment trigger, commission structure, and title transfer documents should all match in writing. In fuel trading, a well-verified procedure is not a delay. It is what allows the transaction to close.
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