PIPELINE TAKE OVER (PTO) - SECTION
REFERENCE CODE: KAPETEXTICS/2025/PTO/01
ORIGIN: KAZAKHSTAN
COMMODITY CRUDE OIL
PROCEDURE: CIF TRANSACTION
From Kazakhstan: Can transport Crude Oil only. (No Gas Pipeline to China)
1.Buyer issues the following documents.
• ICPO with seller working commercial procedure
• Buyer’s company registration certificate.
• Buyer's passport copy
2.Seller issues sales purchase agreement (SPA) to Buyer, Buyer reviews, amends (if necessary), signs and return the sales purchase agreement (SPA) to seller for countersigning along with customer information sheet (CIS).
3.Seller gives Partial proof of products (PPOP) documents to buyer.
• Pipeline Shipment Bill of Lading (Trackable) showing present location of product.
• Product Quality and Quantity report issued by the Pipeline Company to affirm reception of product quality/quantity at the Pipeline facility.
• Product Quality and Quantity Analysis report issued from the Refinery Laboratory.
• Commitment to Supply and Statement of availability of product
• Commercial invoice of 5% commitment guarantee (USD, RMB, HK Dollar payment options available)
4.Within 5 banking days, Buyer pays invoice of 5% security guarantee to seller via TT/MT03 wire transfer.
5.The seller sends instructions to the pipeline company to continue with the commencement of the transportation of the product. Upon commencement of product transportation, the seller's bank sends the below full POP documents to the buyer’s bank.
• Allocation Title Ownership Certificate.
• Contract to transport the product to the loading port.
• Tank Storage Receipt
• Product Allocation Export Permit.
• Bill of Lading.
• Pipeline Shipment Bill of Lading (Trackable)
• Product Quality and Quantity report issued by the Pipeline Company
• Chamber of International Commerce Kazakhstan in Buyer’s Company Name\
• Commitment to Supply and Statement of availability of product
• SGS Quality and Quantity Certificate of product inside the Pipeline. (Borne by Seller)
6.The Seller signs the NCNDA/IMFPA between all intermediaries involved, with the notarized copy sent to the Seller's bank and Buyer’s Bank.
7.Upon arrival of the product at the Chinese port, Buyer conducts CIQ at the destination port and the Buyer makes payment via swift fund transfer within 5 banking days to the Seller for the total shipment value after the discharge of the product. The Seller, within 48 hours, pays the intermediaries involved according to the signed and notarized NCNDA/IMFPA.
