While we are always prepared to speak with a Signatory Buyer or other legal Buyer's Representative, initial Compliance always comes first.
It is important for Buyers and Intermediaries to understand that Essex Energy is the contracted Representative or Partner for our Title Holder / Sellers, and we do not operate as a typical broker, simply introducing potential buyers and sellers to each other. We are Paid by the Seller for two essential services:
1) Marketing - explanation of the Seller's offers; and,
2) Compliance - document exchange up to and including contracts to allow both sides to fully vet each other, and make sure the seller can legally operate with the proposed buyer.
None of our Title Holder / Sellers ask for, or will accept, unsolicited LOI's or ICPO's. All prices quoted are NET to the buyer - as mentioned, Essex is paid by the Seller. Brokers are free to negotiate whatever fee they wish with their Buyer Client.
Procedures (from any of our refinery-level Title Holder / Sellers) are Designed to allow Full Disclosure on Both Sides as the Process moves along.
The Essex Energy Process operates much like Chess: the Seller provides general information / moves first; the Buyer moves back; we move again; they reply - mutual, progressive information exchange from both sides for full disclosure and mutual comfort in a transaction.
When a Signatory Buyer is interested in learning more about any offer as outlined in one of our Overviews, the Only info we / Essex need in the beginning is "public" info which no legitimate buyer should have any issues providing to anyone:
Corporate profile and/or Website
Name of signatory and Title
After our discussions with a Signatory Buyer or Mandate, if the Buyer would like to proceed into a potential transaction, the Seller's Compliance Department will need:
Full name of the entity buying with the full contact details including address, phone, fax, email and website (if applicable)
Corporate profile
Name of signatory and Title
Written Agreement on the Buyer's Letterhead confirming the Seller's Procedures
What Product is needed and Quantity of Product requested
Indication as to port of pick up if FOB or delivery if CIF
That Info, along with our comments and initial detailed review, is provided to Compliance in the US and/or Russia.
Upon successful review (the buyer is legitimate, and the seller can legally sell to them), the Buyer will receive either an ICPO or Request for Quote Template they simply "cut and paste" to their Letterhead for return to the Seller via Essex. This part of the Process provides Buyers a level of disclosure about the Seller (they will receive the seller's Corp Overview and other info if not received previously in our personal discussions with them), and allow them to start to engage on a Principal to Principal basis.
Once the initial documents are completed and exchanged, Contracts will be finalized, the Banks are engaged, and Logistics will be worked out.
All throughout the Process the Buyer is obtaining more confidential info about the Seller, and vice versa. And, there are multiple "escape" points in any transaction before any money is spent on banking.
If both sides agree the other can perform after their personal interaction crafting the contracts and mutual information exchange, THEN the banks are engaged, product is ordered, and moved to the port for loading.
Lastly, if you are an Intermediary, please do not introduce us to another broker who "knows the buyer or buyer's rep." While we recognize and are appreciative of the role that brokers and intermediaries play in the process of introducing buyers and sellers, we only want to speak with someone who has Authority in a transaction - preferably the Signatory Buyer or Mandate.
Interested buyers simply provide us the basic public-level information above, and we'll quickly have it reviewed. More confidential information regarding the legal status of the corporation the buyer intends to use, whether the signatory will be signing on behalf of a JV, their level of experience in this business, their preparation re logistics, and banking information will be needed as we help the buyer move into contract discussions with the Seller Principal on a personal basis.
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