The Kens Global Inc Procurement Process

The process begins when a qualified buyer or their representative submits a formal Fuel Inquiry through Kens Global Inc. The submission captures essential details including:

• Fuel type (e.g., EN590, Jet A-1, D2)
• Required quantity per lift and total contract volume
• Desired delivery location, port, and terminal
• Preferred Incoterms (CIF, FOB, TTO, etc.)
• Pricing basis and payment instrument preference
• Intended end use and delivery timeline

This information allows our consultants to assess feasibility and begin mandate matching.

Before any documents are exchanged, Kens Global Inc conducts a thorough Know Your Customer (KYC) and Anti-Money Laundering (AML) screening of the prospective buyer:

• Verification of company registration and legal standing
• Directors and UBO (Ultimate Beneficial Owner) identification
• OFAC, UN, EU sanctions list screening
• Proof of Funds (POF) or financial capability verification
• End-use declaration and trade compliance check
• Signing of Non-Disclosure Agreement (NDA)

Only verified, compliant buyers proceed to the mandate matching stage.

With a verified buyer profile and clear requirements, Kens Global Inc engages its network of sell-side brokers and mandate holders — intermediaries holding direct authority from oil refineries to offer product. This involves:

• Matching fuel type, volume, and delivery terms to available mandates
• Confirming mandate authenticity and refinery backing
• Reviewing mandate terms, pricing basis, and allocation window
• Shortlisting the most suitable sell-side counterparty

Kens Global maintains active relationships with authorised sell-side intermediaries connected to refineries in Europe, Russia/CIS, the Middle East, and West Africa.

Once a mandate match is identified, the buyer submits a formal expression of intent. The two primary instruments at this stage are:

• Letter of Intent (LOI) — a non-binding declaration of the buyer's interest and preliminary terms
• Irrevocable Corporate Purchase Order (ICPO) — a binding purchase order issued by the buyer on company letterhead, detailing exact requirements, delivery terms, and financial capability

The ICPO is the standard preferred instrument as it demonstrates committed intent and provides the sell side with sufficient information to issue an offer.

In response to the buyer's ICPO, the sell-side mandate holder issues a corporate offer containing detailed commercial terms:

• Full Corporate Offer (FCO) — detailed, binding offer with product specification, price, quantity, delivery schedule, and payment terms
• Soft Corporate Offer (SCO) — preliminary indicative offer, subject to management approval and buyer confirmation
• Product quality specifications (SGS or equivalent inspection terms)
• Pricing formula (e.g., Platts-based, fixed, or negotiated differential)
• Payment instrument requirements (e.g., MT103, LC, SBLC)

The buyer reviews the FCO/SCO carefully. Any material discrepancy from the ICPO is negotiated before acceptance.

Before signing the contract, both parties conduct due diligence. Kens Global facilitates verification of:

• Seller's mandate authenticity — proof of product and allocation authority
• Refinery documentation — Tank Storage Receipt (TSR), Product Passport, or equivalent
• Inspection and quality certification (SGS, Intertek, or Bureau Veritas nominated)
• Buyer's financial institution and payment readiness
• Legal review of all proposed contractual terms
• NCND / IMFPA execution to protect all intermediary parties

This stage protects all parties from fraud and ensures the transaction is commercially viable.

Once due diligence is complete, the Sale and Purchase Agreement (SPA) is negotiated and executed. The SPA is the legally binding contract governing the transaction and includes:

• Product specification and quality tolerance bands
• Quantity per lift and total contract volume
• Price and pricing adjustment mechanisms
• Delivery schedule and lift schedule
• Incoterms and port/terminal nominations
• Payment terms and financial instrument specifications
• Force majeure, dispute resolution, and governing law clauses

The SPA is typically governed by English law with arbitration under ICC or LCIA rules.

The agreed payment instrument is established between the buyer's and seller's financial institutions. Common instruments in petroleum trading include:

• Irrevocable Letter of Credit (LC) — MT700 Swift message; most common for first lifts
• Standby Letter of Credit (SBLC) — used as a payment guarantee for repeat transactions
• Documentary Collection — bank-mediated payment against shipping documents
• Direct Wire Transfer (MT103) — for pre-agreed, trusted counterparties
• Bank-to-Bank (B2B) procedures — for high-value, multi-lift contracts

Kens Global coordinates between the buyer's bank and the transaction timeline to ensure the instrument is in place before the product allocation window opens.

With the financial instrument in place, the physical delivery process is initiated according to the agreed Incoterms:

• CIF (Cost, Insurance, Freight) — seller arranges and pays for freight and insurance to the buyer's named port
• FOB (Free On Board) — buyer arranges vessel; seller loads product at their named port
• TTO (Tanker Take Over) — buyer's vessel takes over product at sea or terminal
• TTT (Tanker to Tanker) — offshore STS (ship-to-ship) transfer
• Independent inspection at load port (SGS or equivalent) — quantity and quality verified
• Bills of Lading (B/L) and shipping documents released upon payment confirmation

Real-time tracking and document coordination ensure seamless delivery to the buyer's nominated terminal.

Upon successful delivery and settlement, the transaction is formally closed. This stage covers:

• Final quantity reconciliation and outturn report
• Payment final settlement and invoice clearance
• Commission distribution to all parties per IMFPA terms
• Post-delivery quality dispute resolution (if any)
• Performance review and feedback
• Long-term supply contract renewal or scheduling of next lift

Kens Global maintains ongoing relationships with satisfied buyers to facilitate repeat orders and long-term supply agreements, often with improved terms on subsequent lifts.