THE PETROLEUM DERIVATIVES TRADING BUSINESS:

Firstly my background as the Founder CEO of Driving Dreams International https://drivingdreams.in/( A law and varied business services providing consulting firm) : As a corporate lawyer experienced in international business establishment, compliances, IPR, M&A, Investments and specializing in Fraud Prevention, Investigation, Recoveries and mitigating Risks.; I have had blessed opportunities to work across the Globe: India, China, UAE, UK, SPAIN, AFRICA, USA, Mexico, Guatemala, Honduras, Panama, Venezuela, Argentina, Chile to name the prominent experiences.

As Co-Founder of ALITPO?https://alitpo.mx/ - America Latina India Trade Promotion Organization we facilitate business growth opportunities to and from entire Latin America.?

Now about the PETROLEUM TRADING BUSINESS:

We are not learned, we have learnt only something and we continue to learn..,

Here are our LEARNINGS:?

We Driving Dreams International, have been working in the Petroleum derivatives : Sourcing : Procurement : Trading business for the past 3 years in which team our team comprising of 10 senior professionals : India (4) + Kazakhstan (1) + Mexico (4) + Venezuela (1) , collectively navigated the scam infested waters of this business, with umpteen fake companies, fake sellers, fake buyers, fake brokers all putting in immense efforts to unscrupulously defraud.

Most traded commodities are JET FUEL (various specs) & Diesel En590 (various specs), and then everything else from D2, D6, Mazut, LPG, LNG, Gasoline (various specs), fuel oil, PetCoke etc..?

Common sense basics for newcomers: who are lured into investing time in the petroleum derivatives trading... vying to earn big money quickly...

we share our learnings? .. . so far . ..?

In this age of connectivity .. how amazingly surprising that Buyers of these commodities can not find the Refineries / Sellers themselves and straight away deal with them, but they need strong help from intermediaries who are actually able to? easily connect to seller refineries (who in the first place wouldn't respond to actual buyers, but are very happy to deal with intermediaries)

on the face of it this appears illogical., nevertheless: apparently this is how the trading of petroleum derivatives exists.

Let us understand first the use of these petroleum derivatives: JET FUEL is to be only used by the AIRLINES .. , most other products, gasoline, diesel by entities who have the infrastructure to store and distribute it in their countries. The Petroleum products have unlimited liability.

Then how come there are umpteen number of self-styled traders claiming to represent buyers for millions of barrels per month requirement of JET A1 or 300000 Tons of Diesel En590,?

Since there are absolutely known number of refineries in the world and only the refineries can and do produce these products, why cant such big value buyers simply approach these known refineries. . .? a natural question .. , well Apparently: it turns out that most refineries from the CIS are least communicable to the outside world and they operate through numerous agents / companies who operate as resellers covering benefits for their principals naturally.

The Case with refineries from other parts of the world Middle East, South Asia, South East Asia, India, Australia, Europe, Africa, USA, Mexico and South America. . ., isn't much different. .. some quantity of product produced is written off from the books but it is never wasted. . it is always sold.. . in many different ways .. , as much deep knowledge and deep connections and daring you have as a buyer you can acquire the same product for half the price., as compared to the global index - the platts indexes.. .

You can imagine the quantity of emails received by the actual refineries... . , in hundreds every day definitely more of just enquiries which are fictitious, so it is understandable that they all together ignore most unknown first time enquiries.

This creates the perfect background for scamsters to operate and fish for victims. Again : The Victims are business people or freelancers wanting to earn big in trading of petroleum derivatives becuase they do the math seeing the offers. . . 2 million barrels per month JET A1 commission 2 USD Seller side 2 USD Buyer side, 12 month contract. . , that looks a huge amount of money right. .?

We will share all our learnings .. . and cover all aspects of this business , lets start what is in it for the Scamsters who impersonate big refineries or other genuine distributors, and they make beautiful websites to lure victims ..?

1. Upfront payment under many pretexts - Tank extension, registration for Terminal Access Permit, Fuel Allocation security, legal fees for registering documents, injection nozzle payment to name the prominent ruses . If the so called buyer does ever pay any such amount under any such pretext .. ., that money is lost and with no communication of the perpetrators .. , initiating litigation against such perpetrators is mired with intensive international paperwork and lawyers fees and time which in itself is so daunting , unless the buyer is really big and extremely influential (and such buyers never deal with such scamsters in the first place), and therefore most would-be wanting to be buyers have suffered at the hands of such scams, with no easy redressal.?

in the initial process of soliciting documents alleged Sellers(scamsters) require identification documents such as passport of the authorized signatory of the buyer company .. , in addition to of course company profile and bank/financials ., these documents per se fetch premium crypto money in the dark markets . .??

Now know these facts and processes ..?

those who have just begun to learn about the Petroleum derivatives trading business mostly might know that Tank Storage is needed to acquire fuel and there is a TSA - Tank Storage Agreement, which is to be followed by an ATV - Authorization to Verify, which is to be followed by a TSR a TANK STORAGE RECEIPT (this means that the Tanks storage rent has been paid and specific tank has been allocated to the payee)

Many a times New Buyers or their agents are misled into believing that fuel is there in a tank and is being resold, I share our extensive learning and intensive investigations:

FUEL NEVER WAITS to be bought : all fuel that is procured is guaranteed sold upfront, either with a financial instrument guarantee or modalities that give confidence to the intermediate seller that the buyer is 100% genuine . The Refineries produce Fuel that is prepaid and pre ordered, in the process they do write off some product which does percolate through and this is the starting point of chaotic unorganized trading.

Understand that Storing fuel in tanks at various terminals or in the pipeline is a big prohibitive cost to the owner of the fuel , be it the refinery or an intermediate seller, there fore genuine seller's ensure that the Buyer is genuine and ready to receive the fuel it claims to buy and resell - redistribute. And for this the Seller insists on the Buyer's Tank Storage Proof and its readiness to receive Fuel, so that then the Seller with this assurance arranges the logistics to provide fuel into the buyer's tank storage.

An example of a correct Sale procedure:?

BUYER Presents LOI along with company profile outlining its requirements

Seller does independent check on the buyer's credentials and presents - Sale Offer outlining detailed procedure

Buyer conducts independent due diligence check on the seller credentials? and if satisfied issues the ICPO - Irrevocable Corporate Purchase Order - this document mentions the purchase requirement in detail along with technical specifications and is accompanied with the Buyer's authorized signatory's credentials (Passport) and Financials of the Buyer Company and the TSA - Tank Storage Agreement and ATV (authorization to Verify in favor of the Seller form the Buyer's Tank Farm Logistics company)?

The Seller on receipt of these documents and on verifying their authenticity and validity,

arranges fuel existence in the sellers control: either in the Seller owned/rented Tank Storage or Pipeline and then

issues its Commercial Invoice to the Buyer for the Buyer's acceptance, and then

follows up with providing POP (Proof of Product) as in

-Injection Report,

-SGS INSPECTION (or other equivalent) report for Q&Q (quality and Quantity) ,

-the DTA (Dip Test Authorization) to the Buyer in order for the Buyer if it so desires to conduct the SGS test on the fuel in the Seller's tank at that moment for Q&Q or the Injection Programing Agreement to enable the Seller to inject the fuel into the Buyer's Tank (this happens when the Buyer relying on the SGS gives permission to the Seller to inject the Fuel into its tanks) and

-on full completion of injection of fuel into the Buyer's tank, the Buyer then does the SGS DIP TEST to ascertain the Q&Q and with a satisfactory report - then..,

-The Buyer Pays for the FULL VALUE? of the fuel received in his tanks as per the Sellers Commercial Invoice.

-at this Stage the seller also issues an additional document called the ATSC (Authorization to Sell & Collect) this is useful for buyers who immediately sell the fuel ahead to another buyer based on valid documents and collect the payment and then pay the Seller and then have the title transferred to their ownership or to their buyer ahead.?

-The Seller on receipt of payment, then pays the commissions to the intermediaries involved who have been covered under the IMFPA (Irrevocable Master Fee Protection Agreement) Some sellers will accommodate the IMFPA early on during the receipt of ICPO, where as most other sellers will only allow the IMFPA once the POP is offered by the seller.

We have learnt enough times: When it appears too good to be true! IT IS NOT!

We count on a strong team of professionals aptly knowledgeable and influentially connected to serve various needs of Buyers as also Sellers.., be it Due - Diligence check of every kind and manner, represent for physical meets, document preparation and verification, negotiation and Escrow management in short we are you one point solution for all you need to be successful in your petroleum commodities trading ventures while mitigating your risks appropriately.

Warm regards

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CORE SUPPORT TEAM

Mr. Jorge Pozas ( Monterrey - Mexico) Co-Founder & CEO ALITPO America Latina International Trade Promotion Organization (Monterrey - Mexico)? https://alitpo.mx/ E-mail: [email protected] Mobile Phone: +52?1?81?1619?3306

Mr. Luis Felipe Dominguez Sosa (Caracas -Venezuela) Sr. Vice- President - South American markets. Driving Dreams International E-mail: [email protected] Mobile Phone: +58?414-2876002

Mr. Carlos Contreras (Monterrey - Mexico) Sr. Vice- President – Mexico Procurement Specialist. ALITPO E-mail:?[email protected] Mobile Phone: +52 1 81 2697 6431

Mr. Bernardo Del Valle (Monterrey - Mexico) Commercial Representative – Mexico Procurement Specialist. ALITPO E-mail:?[email protected] Mobile Phone:?+52 1 81 1909 3193

Mr. Sudhir Soni Sr. Vice President (India Business Development) Driving Dreams International & ALITPO America Latina International Trade Promotion Organization E-mail: [email protected] & [email protected] Mobile Phone: +91?99710?24346

Mr. Srijai Raman Sr. Vice President (India Business Development) ALITPO America Latina International Trade Promotion Organization (Kochi - India)? E-mail: [email protected] Mobile Phone: +91?99468?60750

Mr. Timur Kim Consultant OIL & GAS - Kazakhstan.