Date: February 2025 – Ongoing
Deal Type: Mandate Support & Buyer-Seller Coordination
Volume: 50,000 MT/month for 12 months
Commodity EN590 10ppm
Region Netherlands to West Africa
Fuel Supply - West Africa
Background
Late 2024, Auctora was approached by a vetted intermediary holding a mandate from a West African buyer group. The end buyer was a government-linked infrastructure and energy distribution entity seeking long-term diesel supply under CIF delivery terms to support nationwide fuel distribution operations.
The mandate holder had engaged multiple brokers previously but failed to secure a deal due to vague procedures, lack of seller transparency, and conflicting documentation. Our first step was to filter through the noise and establish a clear procedural baseline for moving forward.
Auctora’s Role
Auctora acted as a direct commercial advisor and facilitator, providing the following services:
- Mandate Verification & Buyer Readiness Assessment
We vetted the mandate documentation and verified the buyer’s operational and financial capacity to execute. This included a review of LOI, company documentation, and the proposed instrument (DLC). - Seller Vetting & Allocation Validation
Through our EU-based refinery-side seller network, we introduced a seller mandate with verified allocation in Rotterdam and a tested, performance-backed supply history. The seller operated under industry-standard procedures and offered full PPOP post-DLC issuance, in line with our client’s expectations. - Contract Structuring & Procedure Alignment
We facilitated the SPA negotiation process, aligning incoterms, laycan terms, port clearance processes, and timeline clarity. Our team ensured the agreement reflected realistic banking windows and protected both parties from ambiguity or risk-heavy clauses. - Documentation Flow & Pre-shipment Oversight
Auctora assisted in ensuring the DLC terms aligned with seller expectations and SGS standards. We reviewed the seller's corporate paperwork, including: - Past performance documentation
- Export license
- Product passport (EN590 spec)
- Q&Q procedures
- Charter party framework for the initial laycan
- Onboarding & Compliance Support
The buyer had limited experience dealing with EU refineries. We provided hands-on guidance for their legal and procurement teams to navigate banking, timing, and documentation processes, significantly reducing confusion and delays.
Challenges Overcome
- Misinformation: The buyer had received multiple SCOs with unrealistic pricing and fake POP promises. We clarified how real CIF transactions are structured and reset expectations around market price and procedure flow.
- Instrument Concerns: The buyer's bank initially resisted a full revolving DLC. Auctora helped coordinate direct communication between buyer’s bank and seller’s financial officer, ultimately securing acceptable instrument terms.
- Port Clearance Pressure: Delays in updated local port policy threatened laycan timing. We helped liaise with port-side clearing agents and assisted the buyer in preparing customs protocols in advance.
Outcome & Impact
The buyer and seller signed a 12-month contract with the first 50,000 MT laycan initiated in March 2025. PPOP was issued upon confirmation of instrument activation, and SGS verification was carried out successfully before departure. The relationship has since grown into a pipeline for further fuel-based discussions across East and West Africa.
