FTNX CORPORATE
ESTABLISHED 1988
© FTN EXPORTING TRADING HOUSE
Founder SMICE Exchange and URPIB Rules of Trade
International Author and CEO: Davide Giovanni Papa
© FTNX: Australian Business Number ABN:B2144654K
AGI: Education Division: Buyers/Sellers ABN:B2043651G
P.O BOX 468 CARLTON NORTH 3054
MELBOURNE, AUSTRALIA Facsimile: (61 03 ) 9347 0003
E-MAIL Private: ftnexportingceo@bigpond.com
No phone numbers provided until contract issuance

SMICE Crude Oil Exchange and Benchmark
CRUDE OIL BUY ADVICE
SMICE WORLD WIDE ADVICE FOR SUPPLIERS 2012

Any supplier of crude oil (or fuels) looking for extra added sales and are able to provide SMICE with an assurance of supply , based on the procedures (or close to such) as advised below please send your offer to Sam Ryan C/o SMICE ftn_smice@bigpond.com

PREAMBLE

FTN Exporting is a Independent private buyer of large cargo lots of non bulk break commodities including crude oil and fuels. We are also International trade experts. SMICE is the medium used by FTN Exporting to profess its purchase intent. This invitation is made for crude oil and fuel suppliers world wide. SMICE specialise in large contracts of supply. FTN Exporting act as buyer to the supplier and seller to our own end buyers. We are legally responsible to the supplier as per contract terms and conditions and are legally obligated to our end buyers as per our contract with such. No spot deals accepted. Once SMICE makes payment first delivery is expected within 40-60 days there after. The bigger the assurance of supply the better the purchase intent becoems , if a reasonable price better than normal market rates is apparent close to as stipulated by our formulation.

The arrangement SMICE has with its buyer ant any given time is not the business of the supplier and visa versa. FTN Exporting buys and sells in the first instance crude and fuels on behalf of undisclosed principals via secondary market offers. FTN will consider to also sell such goods on ‘behalf of disclosed and honourable principal’ as their authorised agent under very certain conditions at our discretion, where a primary offer is made.(Tenure fee applies)

For all intentional purposes a primary offer is defined as a OPEC endorsed offer in where details of the OPEC registered refinery or producer are disclosed to all potential buyers of SMICE on any offer accepted (and visa versa) A secondary market offer is an offer made in contrary to stipulations required under OPEC sanctioned sales and indifferent to requirement required under ARAMCO contracting conditions in where no such said disclosures will be forthcoming in where SMICE is the buyer and is the only consideration that the supplier may assert when making any assurances of supply. (A refinery looking for feed stock may also make inquires)

WHAT DOES SMICE INITIALLY REQUIRE
As it applies for crude oil such applies on the same similar basis for other petroleum products assured. In all cases our consideration to purchase commences with an assurance of supply. Any entity who is able to supply to FTN Exporting as buyers, a large quantity of crude oil ( or other fuels ) on a monthly deliverable basis over 1, 2, 3 years may provide a standing assurance of supply. All matters are strictly confidential.

All other petroleum products considered including LNG / LPG Gas, Bitumen, Heavy fuel oils, Ethanol, Fractional Distillates, including Naphtha, Diesel, AGO, and Aviation Jet fuel A1. (and Coal.) FTN Exporting requires assurance of supply from potential crude oil / fuel suppliers and exporters. Suppliers are encouraged to consider selling such products to FTN Exporting as we (amongst other things)

1. Guarantee leading payment instruments
   
2. Guarantee safe strict closing procedures
   
3. Guarantee payment upfront 7 days after contracts are signed.
   
4. Require 1st delivery 60 days (or more/less) after contracts are signed.
   
5. Take legal responsibilities and binding attributes of any contract signed.
   
   

1. Open offer given for FTN purchase consideration
   
2. Offer is considered for up to 120 days and / if accepted- (as legally binding)
   
3. Supplier advises contracts. ( or our contract model may be considered)
   
4. Contracts are signed within 7 days of issuance.
   
5. FTN Exporting as buyer advises financial instrument within 5 days there after
   
6. Upon acceptance, Performance guarantee advised.
   
7. First delivery initiated 60 days after contract is signed (or as per contract date)
   
8. Delivery continues monthly after each new benchmark reading is taken a month in advance of actual delivery, until final contract quantity are taken.
   
   

1. Once offer is provided such an offer date becomes price formulation date, and monthly anniversary transaction starting date.
   
2. 12.01 PM AEST or after is the reading time on any day of reading being taken to apply below formulation.
   
3. Offer is advised to SMICE with a starting price as formulated every month.
   
4. The contract once signed is price applicable to first delivery values.
   
5. The contract one signed becomes the anniversary date for all other deliveries.
   
6. Once first delivery is completed, the month prior of such delivery as per the price formulated as per contract anniversary date, is applied to the 2nd delivery. Once 2nd delivery is completed , the price formulated a month prior to 2nd delivery is the applicable price for goods applied to 3rd delivery and so forth and so on.
   
7. The 12th (or last ) delivery is formulated on the price taken one month earlier.
   
8. Example : Goods delivered on 10th June 2012 attracts 10th May 2012 formulated price for that shipment. 10th of July delivery based on formulation 10th of June 2012 and so on and so forth.
   
   

1. Supplier in possession of goods make an offer or provided RFQ
   
2. The starting price is based upon WTI 39 API per BBL USD$ benchmark.
   
3. example: If WTI reads on day of offer made $97.00 per bbl then;
   
4. For every API less than 39 a fifty cents per bbl SMICE discount is applied.
   
5. example: 35 API is offered hence starting price is $95.00 Per BBL
   
6. For Sulphur exceeding 1.0% by increment discount $2.00 BBL is applied
   
7. example: Sulphur is 1.8% starting price of offer is $93.00 per BBL
   
8. From the formulated bench mark, a SMICE discount of 10% per BBL applies.
   
9. example: $93.00 bbl minus 10% =$9.30 per bbl. Starting price=$83.70
   
10. Fixed Premium to favour supplier on every delivery after price is taken.
    
11. Fixed premium of 4% of starting WTI benchmark as per Par: (3) of above formulations taken and added to net formulated price at Par; (9) above to favour supplier.This sum is the collectable sum of each delivery.
    
12. As per above, first delivery price to SMICE would be =USD$ 87.58 per bbl.
    
13. SMICE considers buying crude / fuels based on a similar outcome to above formulations or as per a said formulation.
    
14. All prices to nearest whole cent.
    
15. All DLC Credits used to pay for goods after first starting price is amended as required should the formulated price exceed 5% DLC tolerance factors. DLC collection value if no amendment is required is collected at given price as per invoice presented monthly.
    
    
    

These are the basis in which FTN Exporting is able to buy crude oil or fuels from any acceptable supplier world wide. When officially buying SMICE lodges full DLC value, seven days after contract are signed, for first delivery 60 days or less there after.