FAQ: Crude Oil
1. Question: Do I need to come to the competitive bidding?
Answer: No, you needn’t as the competitive bidding is held via the Internet
https://e-trade.ppc.net.ua
2. Question: What is the starting price?
Answer: The starting price is specified at 11.10 on the day of competitive bidding.
3. Question: What minimum and maximum volume of crude oil can be purchased at the competitive bidding?
Answer: The minimum volume of crude oil, which can be purchased, equals to 250 MT.
4. Question: What volume of crude oil can a Buyer bid for?
Answer: If the Buyer has taken part in the bidding and purchased crude oil on repeated occasions, the volume is not limited. If the Buyer has no history of contractual relationship with JV PPC, a maximum lot to be purchased is limited by 30% of the crude oil volume offered for sale at the competitive bidding.
5. Question: How is the feedback achieved? How is the initial bid receipt confirmed?
Answer: The feedback is only via e-mail and the Internet resource https://e-trade.ppc.net.ua.
6. Question: Is it possible to join the bidding at the end when the final price is known and purchase a required volume at the specified price?
Answer: No.
7. Question: Does the price depend upon volume?
Answer: No.
8. Question: How many times a month are the competitive biddings held and what are the total monthly sales?
Answer: The competitive biddings are held every week or every two weeks (depending on the volume of crude oil production). Oil that has been produced over a week, which equals to about 2,000-3,000 MT, is offered for sale. The total monthly sales amount to about 10,000-12,000 MT.
9. Question: When will the crude oil purchased at the competitive bidding be shipped?
Answer: The base daily shipping amount of crude oil purchased at the competitive bidding equals to 1,000 (one thousand) MT/d.
10. Question: On what principles will the shipping schedule be drawn up if the competitive bidding is won by several clients?
Answer: The shipping schedule shall be drawn on the basis of the payment history following the principle: the first to pay, the first to load.
11. Question: What are the payment terms and conditions?
Answer: The term of payment shall not exceed 3 (three) banking days including the competitive bidding day. The shipping agent offered by us is to be paid for shipment within the same term.
12. Question: Can the purchased crude oil be shipped to several addresses?
Answer: Yes, but a minimum lot shipped to an address equals to 250 (two hundred fifty) MT.
13. Question: Can the shipment be deferred to a later date?
Answer: No, oil will be shipped according to the schedule (mostly within a month) prior to the date of next bidding. We do not provide any purchased crude oil storage services.
14. Question: Can a long-term contract with a fixed volume for some months be signed and the price specified in the amendment agreement to the above mentioned contract (according to the bidding results)?
Answer: No, as of today long-term contracts are not signed.
