TRADING PROCEDURES  

Trading Procedures between Dzata Energy LTD and its prospective Buyers are a reflection of the requirements by the Supplier/Refinery that Dzata Energy LTD are purchasing the fuels.  These Procedures posted below are current and Non-Negotiable.  These Trading Procedures are also listed with our current FCO ( See the Home Page).

TANK TO TANK PROCEDURE

FOB–ROTTERDAM,NETHERLANDS

1. BUYER issues Irrevocable Corporate Purchase Order (ICPO) along side with Company Registration Certificate and Copy of Passport. If the buying party is being represented by a Mandate or Buying Agent a company letter should also be provided to authenticate the person representing the Buyer.
   
2. SELLER issues Buyer countersigns within 24 hours and returns to the seller with copy of the Buyers TSA, and proof of financial capability (BCL, LC or MT799). SELLER and BUYER sign a Confidentiality Agreement and agree that all negotiations will be done strictly   between officers of the SELLER and the BUYER Corporations.
3. Seller and Buyer will have a video call or Zoom call to authenticate the parties involved in the transaction.
4. SELLER provides the following POP documents to the Buyer

1. 1. Tank Storage Receipt (TSR) with GPS Coordinates, Hub Number and Terminal access Code issued by Tank Storage.
   2. Commitment Letter to Supply
   3. Passport Product Analysis
   4. Authorization to Sell and Collect (ATSC from Titleholder to Buyer)
   5. Authorization to Verify (ATV)
   6. Unconditional Dip Test Authorization Letter (UDTA)
   7. Fresh SGS (or equivalent) less than 3 days old from Rotterdam Branch
   8. Injection Report
2. 5. BUYER verifies and confirms of the above POP documentsand contacts the tank storage company to verify the Seller Tank Storage Receipt (TSR).
3. 6. Upon Buyer’s successful verification of the POP documents, Buyer will provide Tank Storage Receipt (TSR) for verification and approval for minimum 5 days in order to inject the fuel in Buyer’s tanks.
4. 7. BUYER makes 100% payment via TT / MT103.
5. 8. SELLER injects fuel in Buyer’s tanks and upon completion of injection transfers title ownership and all export documents to the Buyer.
      
6. 9. SELLER pays commissions to any intermediaries in the Seller side involved in the transaction. Buyer pays commissions to any intermediaries in the Buyer’s side involved in the transaction.

FEB 27, 2023

TO ALL PEOPLE INVOLVED IN THE OIL TRADING WITH DZATA ENERGY

The oil trading industry has mainly 3 level of participants:

1 – Refineries, or their authorized Mandates or Distributors.

2 – Front Buyers (Dzata Energy) or similar entities

3 – Exit Buyers or, their authorized Mandates or Agents

We, at Dzata Energy, have encountered over the last 2 years, a multitude of either individuals or entities pretending to be either:

1. Refineries, Refinery Mandates or Distributors
2. Buyers, Buyers Authorized Mandates or Agents
3. Tank Storages Officials or verifiable Agents

What those entities or individuals were just trying to refer names, or gathering data to be used in scamming activities, causing a lot of mistrust on anyone involved, loss of time and financial resources.

We are attaching new procedures aiming at eliminate all those who are not authorized by the buying entity to conduct business in the in its name. This verification process will only affect the beginning of the transaction, which is establishing the authenticity and the Financial Capability of the Parties involved. This will include providing copies of Corporate Registration, Passport or other identification document followed by a video call or a Zoom meeting to confirm we are dealing with a valid entity or individual.Once the Authenticity is established any subsequent transactions with the same entity will not require the same process of verification.

Proof of financial capability will also be requested, to avoid dealing with parties who could not financially afford to enter in an Oil Product transaction. The Proof of Financial capability can be provided through a Bank Comfort Letter (BCL), MT199 or any other document that would show the Buyer is financial capable to pay for the Oil Product.

Dzata Energy has to follow the same process, when dealing with the Refineries, there is no reason why the entities we sell the Oil Products to would not follow the same identification and financial capability steps when dealing with Dzata Energy.

We regret having to implement these procedures, but hope you understand that we are just trying to protect ourselves and the people we do business with from unscrupulous individuals. Our industry will be doing much better and will be more credible at the end.

Respectfully
Marc J. Bota, CEO