USE OF J-OIL EXCHANGE PTE LTD FOR BARGE SWAP TRADING
J-OIL EXCHANGE PTE LTD (JOX) aims to facilitate swap transactions of petroleum products on the Internet. The basic specifications of transactions conducted through the JOX web site is as follows:-
| 1) | Products:
Gasoline, Kerosene, Gasoil (0.005% Sulphur), AFO 0.1(LSA), AFO 1.0, HSCFO (3.0% Sulphur), LSCFO (0.3% Sulphur) |
| 2) | Quantity:
transactions conducted through the JOX systems will be in units of 100 kilolitres |
| 3) | Price:
unit measurement of price is in Japanese Yen (Yen) per kilolitre Please note that gasoline prices quoted include the Japanese gasoline tax of 53,800Yen per kilolitre. Rounding Off For Floating Price: All floating prices will be rounded off to the nearest one (1). If the first decimal place is five (5) or greater, the first digit will be rounded up to the nearest digit. For example, 125.5Yen will be rounded up to 126Yen. If the first decimal place is less than five (5), the first digit will be rounded down to the nearest digit. For example, 125.4Yen will be rounded down to 125Yen. |
| 4) | Duration:
For each product listed above, JOX will provide the trading period of seven (7) forward months (including the current month). The trading of each forward month will close on the 25th day of that forward month. A new 7-month trading period shall commence from the 26th day of the month preceding the relevant forward month. |
| 5) | Dealing model:
Swap transactions without physical delivery. Every transaction is an over the counter transaction between two companies. For example, if a party buys(or sells) a products at fixed price and sells(or buys) the same product a the same quantity at floating price, a counterparty does vice versa. The floating price at which the transaction is concluded(ie: contract formed) will be calculated as the average of the means of Japan domestic spot market covering Barges FOB refinery/ primary storage Tokyo Bay or West Japan basis as RIM INTELLIGENCE CO during the period from the first published day to the last published day in agreed month between both parties. Firm Offers If you post a firm bid to buy and a counterparty posts an correspondingly identical firm offer to sell, a contract is formed between you and that counterparty. This contract is formed without any further act on your part or the counterparty. Indicative Offers If you post an indicative bid to buy and a counterparty posts an correspondingly identical firm offer to sell, no contract is formed between you and the counterparty unless and until you confirm and accept that counterparty's offer. |
| 6) | Settlement:
Net amount due under each of the two (2) legs of sales and purchase shall be off set and payment made by debtor party in full in Japanese Yen against the creditor party's invoice. |
| 7) | Credit line:
Each party has to set the limit of credit for each counter party on a daily basis. |
| 8) | Negotiations:
all transactions shall be made through automatic matching system through the JOX web site or through negotiations between the parties using the chat function as provided in JOX system. |
| 9) | Trading Time:
9:00-19:00 (Singapore time) |
| 10) | Others:
JOX will send the recaps (deal confirmation form) to both the selling party and the buying. This recap is a service provided to the parties remind them of transactions concluded through the JOX web site. The formal contract containing all the necessary terms and conditions shall be made between seller and buyer at some later time to be mutually agreed. |
