JV/FUEL TRANSACTION PROCEDURES

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We have Investors that are interested in joining forces with companies that have direct access to suppliers of fuel products (typically D2 or JP54, but will look at all oil products). If you are a Seller or directly represent a Seller of product, we are interested in talking with you.
Information required:

Brief summary of the company / individual with whom we will be dealing
Summary of the oil transaction (FCO is preferable)
Procedures requested for the transaction
Two Funding Options:

Option 1 – Financial Partner Only

Pros

1. Strictly a Financial partner
2. Not in the Oil business but very strong financially
3. Will provide funds for a share of the profit
4. May use your Seller AND Buyer

Cons

1. Timelines tend to be slower than is required to transact 1 Program with 100% disclosure
2. Located in Western Europe so time zone issues

Option 2 – Buyer/JV Partner

Pros

1. Partner/Investor is in the oil business and is VERY knowledgeable of all the players in the market. (Partner/Investor will instantly know if deal is real or not)
2. Partner/Investor will immediately determine if transaction is legitimate or not.
3. Partner/Investor will act in a timeframe that is customary in the oil business.
4. Partner/Investor has very strong financial capability
5. Will pay assignment of contract fees higher that what a regular intermediary would receive if Seller’s agent put the end buyer direct.

Cons

1. Partner/Investor will typically want to use own end buyers to guarantee take out.  Partner/Investor prefers to purchase an assignment of contract The following is a step by step description of the process to get into transaction. Partner/Investor will insist on full disclosure. Once the above documents are provided, a call between broker and supplier’s agent will occur to discuss the deal and verify validity of transaction.
2. FCO is then forwarded to the Principal/Investor and then will review. If transaction verifiable a call will be arranged with Seller’s Agent and Principal/Investor.
   (Note: SBLC will not be provided but will provide a MT103-23.)
3. Transaction is reviewed, procedures are verified, deal structure is determined and price/commissions are negotiated.
4. Principal/Investor and Seller’s Agent will then communicate directly with each other. (Note: We don’t require an NCND or MFPA should attempt of circumvent, our Principal/Investor will cancel the transaction and not do business with that Person(s),Entity or group again.)
5. Proof of Funds are provided
6. Proof of Product is received
7. Contract is signed
8. Product is delivered
9. Disbursements occur.

Prior to a conference call, we will need a written Narrative/Scenario of the Details of the Transaction in as much detail as possible with Total Transparency so we can determine if the investor is interested.
This is to be done for each deal so when we get on the call with the investor, the investor will then decide as to move forward.
The fees will vary and will be divided by intermediaries (Brokers Protected).
Before the start of the transaction a CONSULTANTS/BROKER RECITALS LIST will be completed and submitted with package.
(Please put the last name of principal or funding entity in the subject heading and be consistent in all Emails. This is how the deal will be filed)

Tags: Fuel project, fuel transaction program, fuel funding, fuel program, joint venture fuel program

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