Diesel Supply

Structuring a Bankable Long-Term Diesel Supply for a Private Energy Distribution Group

Background

In the final quarter of 2024, Almasar Inc. was approached through a vetted intermediary holding a formal mandate from a privately held, regionally established energy and fuel distribution group operating across West Africa.

The buyer sought to secure a long-term diesel (EN590) supply under CIF delivery terms to support downstream fuel distribution and logistics operations across multiple markets.

Prior to Almasar Inc.’s involvement, the mandate holder had engaged multiple intermediaries without success. The process was disrupted by inconsistent procedures, unverified sellers, conflicting documentation, and unrealistic pricing expectations, including premature Proof of Product (POP).

Almasar Inc.’s first step was to eliminate uncertainty, establish procedural clarity, and reset the transaction on a commercially executable and bankable foundation.

Almasar Inc.’s Role

Almasar Inc. acted as a direct commercial advisor and transaction facilitator, overseeing the engagement from mandate verification through contract execution.

Mandate Verification & Buyer Readiness Assessment

Almasar Inc. conducted a comprehensive review including:

• Verification of mandate authority and chain
• Review of the Letter of Intent (LOI)
• Corporate documentation validation
• Assessment of the proposed financial instrument (DLC)

This confirmed the buyer’s operational credibility and financial capacity to execute a long-term supply agreement once procedures were aligned.

Seller Vetting & Allocation Validation

Through its EU refinery-side seller network, Almasar Inc. introduced a verified seller mandate with:

• Confirmed product allocation in Rotterdam
• Documented, performance-backed supply history
• Industry-standard CIF procedures
• Full PPOP issuance post-DLC activation, consistent with refinery-level transactions

This eliminated speculative offers and non-performing counterparties early in the process.

Contract Structuring & Procedure Alignment

Almasar Inc. facilitated SPA negotiations, ensuring alignment on:

• CIF Incoterms
• Laycan scheduling and vessel nomination timelines
• Port clearance and discharge procedures
• Realistic banking and instrument issuance windows

Ambiguous and risk-heavy clauses were removed to protect both parties and ensure contractual clarity.

Documentation Flow & Pre-Shipment Oversight

Almasar Inc. supported and reviewed the full documentation flow, including:

• Seller past performance records
• Export licensing
• Product passport (EN590 specifications)
• Quantity & Quality (Q&Q) procedures
• Charter party framework for the initial laycan

The team ensured DLC wording aligned with seller expectations and SGS inspection standards, preventing last-minute discrepancies.

Onboarding & Compliance Support

With limited prior exposure to EU refinery-origin CIF transactions, the buyer received hands-on guidance covering:

• Banking communication protocols
• Documentation sequencing
• Compliance and timing expectations

This reduced operational friction and avoided unnecessary delays.

Challenges Overcome

Market Misinformation

The buyer had previously received SCOs featuring unrealistic pricing and false POP claims. Almasar Inc. clarified proper CIF transaction structures and reset market expectations.

Financial Instrument Alignment

Initial concerns from the buyer’s bank regarding a revolving DLC were resolved through coordinated engagement with the seller’s financial team, resulting in mutually acceptable terms.

Port Clearance & Timing Risk

Changes in local port policies created laycan pressure. Almasar Inc. worked with port-side clearing agents and supported advance customs preparation to protect shipment timelines.

Outcome & Impact

The engagement concluded with execution of a 12-month diesel supply contract, commencing with an initial 50,000 MT laycan in March 2025.

• DLC activation in line with agreed procedures
• PPOP issuance upon confirmation of instrument activation
• SGS inspection and verification completed prior to vessel departure

Following successful execution, the relationship expanded into a broader commercial pipeline, opening discussions for additional fuel supply and downstream energy projects across West and East Africa.

What This Case Demonstrates

This transaction reflects Almasar Inc.’s core strength: transforming complex, high-risk commodity transactions into structured, transparent, and executable agreements — delivered with confidentiality, discipline, and commercial integrity.