FTNX INDEX:  SEMI FIXED CRUDE OIL BUY PRICE FTNX is offering to buy crude oil and refine fuels using a SEMI fixed contract basis at Free Alongside Ship ( FAS) delivery mode. The FAS delivery mode is only applicable to the price of crude oil,  and not to final delivery mode or price payable. A semi fixed contract basis is a basis that follows a listed reliable benchmark to formulate the FTNX index  buy price basis. The average price arrived from the disclosed  reliable benchmark price used, becomes the FTNX Index listed buy price.  A tolerance factor is  attached to the FTNX Index buy price (FIBP) basis. This tolerance factor is listed on the FTNX index in accordance with the transaction code or order reference number (ORN) .Parties to a contract follow the reliable benchmark price  which is taken on the 15th day of a delivery month  at 12.01 PM or before, when a live deal is in effect between a supplier and the buyer FTNX. The benchmark offered ( Brent and WTI average of the two) which is  taken to  arrive at the FTNX index buy price per Blown Barrel (BBL). The BBL aspect is converted to a metric ton aspect.FIBP buys goods per Metric Ton not BBL. The  final assessed buy price remains the same if the previously taken price basis  has not breached the FTNX listed tolerance factor. If the tolerance factor is breached, the new price formulated  is applied as the payment value for that month. If the  buy price falls by the tolerance factor, the  lower payment price for a particular month  reflects the new payment aspect–once formulated to reveal the FIBP price. The rise and fall factor  as taken on the 15th  day of each delivery month, as taken at  11.59 AM or before AEST. If the price does not breach the tolerance  factor the same fixed price basis  as per the previous month applies,  as payment for contracted goods at the FAS delivery mode. This semi fixed price basis stabilises the payment price for contracted goods  for much longer periods of time,  without the need for FTNX to apply for amendments to the credit, as  lodged by the end buyer, to pay for goods when  the purchase contract is signed by FTN (saving delays and added expenses.) All buy price factors are equalised to the nearest dollar and nearest whole cent value. Once the FAS buy price is formulated , the supplier is to add all expenses thereafter in having the goods finally delivered at the  ICC CIF delivery mode, once the destination port is advised by the buyer FTNX. ADVICE TO SUPPLIERS WORLDWIDE Per NBC cargo at ICC FAS at quantities  of  80,000 MT  shipments per months (min) over 3 years or longer. Shipment  load of up to 120,000 MT (max) considered. All offers of supply  made to FTNX pertaining to lower quantities or grades than indicated, are subject to negotiations  between supplier and FTNX Brent and WTI prices is tracked using a reliable  spot exchange listing. Reliable listing is defined as Bloomberg Index Brent  and WTI price is tracked and  averaged to arrive at the FAS   delivery mode  as per the FTNX Index buy price basis. All prices formulated to nearest whole cent. The FTNX Index may change once the tolerance factor are breached  ; or discretion is applied in where all prices may be examined and changed as necessary on the 15th day of each month- if no live deal is apparent. Once a live deal is apparent, the aspect taken under the ORN  remains attached with the supplier as apparent at such a time to which the FIBP is tracked and changed as tolerance factors are  breached. On an active deal, the  FTNX average  Index price is formed,  tracked and applied by the supplier and buyer FTNX, on the 15th day of every month as taken prior top 11.59 AM AEST Once supply  assurance is served to FTNX, the basis and price payable is applied as per  above advice  at ICC  FAS  Incoterms – in that; Once supply assurance is served , any purchase leading to a signed contract within 30 days, attracts  FTNX Index  30 days buy price as the payable price to the supplier . Once supply assurance is served , any purchase leading to a signed contract within 60 days, attracts  FTNX Index 60 days  buy price  as the payable price to the supplier. Once supply assurance is served, any purchase leading to a signed contract within 90 days, attracts  FTNX Index 90 days buy price as the payable price to the supplier  Upon signed contract being confirmed,  the next price basis  for first delivery is taken on the 15th day of the month  Delivery commences monthly, within 7 days thereafter. If on the 15th day of each tracking month should the  FTNX Index price remain within the listed tolerance factor, previous price applies, from when  first delivery take place. All assurance  to supply ( offers)  FTNX with crude oil must be valid for 120 days and be served in the form of a full offer as advised by email as a  PDF The discount sought by FTNX remains fixed for the life of the contract  as per the ORN.  7.5  BBL to MT factor is used as a general factor to arrive at the Metric Ton FAS price basis. Actual BBL/MT factor of supplier applies as indicated on the offer  Offer is only for SWEET crude oil with a sulphur content of less than 0.5%.The  sweet factor is the main factor being assessed. The API aspect from 30  up to 40 API is sought. Price basis offered is for  ICC FAS  Incoterms  delivery rules as current. Actually delivery is at CIF incoterms.  Supplier has Cost, Insurance and Freight aspect applied to the FAS price, when FTNX purchases goods offered, by surrendering the destination port and related advice therein. FTNX intentions to buy is served with  Offer to Procure, in where the  port of Destination will be specified. The OTP is based on the offer advised by the supplier. Insurance cover at Institute Clause Class ‘A’ for 110% of contract value will be sought for all CIF orders. Supplier prepared to supply stock to FTNX  Index listing, may  advise a full  offer. The offer if accepted will be  returned  signed within the 120 days validity period– as legally binding. If the offer is not accepted , it will be rejected in where an OTP will will advised in its place within the 120 days validity period.  Once an offer is advised , email communication  with FTNX and the supplier remains  open. All business with FTNX is strictly confidential. FTNX is the Buyer. The purchase procedures will follow; Offers, acceptance , rejection (OTP served if rejected ) Contact, FTNX lodges payment, Supplier lodge P.G. 1st delivery take place  Transport Documents are presented cleanly at sight ( bank) Collections of DLC  take place. Physical delivery take place from POL top POD. Next shipment is prepared. When the BUY sign is in place , FTNX is prepared to buy Crude oil at the listed aspect. FTNX CRUDE INDEX Advice to End buyers and USCT PCT When the BUY price in GREEN Print  on the FTNX Index is  added or changed to a SELL price in RED print , End Buyers and Current registered  PCT’s may approach FTNX to buy listed goods, at the  FIBP  FAS sell price less listed discount and OPX FTNX will serve and offer to the  end buyer as Seller at FAS incoterms unless  CIF is sought  No products are sold by FTNX where sanction with USA,U.K, ECC or Australia is evident. The end buyer price is the same at per the basis secure from the supplier - as relevant on the FTNX FAS  index as per first delivery date ( 30, 60 or 90 days) The end buyer  agrees to the  FTNX transparent disclosed OPX ( Operational Expenses ) rate The OPX is taken from the  listed, disclosed discount as secured from the supplier . The discount rate to the end buyer  is  reduced by the OPX factor in an open and transparent manner .The OPX pays for all FTNX expenses including all rebates and commission payments The Seller is FTNX. The FTNX bears all liabilities of the transaction when dealing with its end buyer. Nature of business FTNX has with its supplier plays no part in the business being initiated with the end buyer . When the SELL sign is apparent, end buyer  makes a copy of this advice  and returns it to FTNX  with details as disclosed below . In return FTNX will advise  to the  the end buyer  an offer to consider valid for 7 days. An end buyer who is unable to secure payment with a bank issued ICC endorsed DLC should not apply to buy goods offered on the FTNX Index.  END BUYERS PURCHASE INTENT (All prices are for monthly supply on a 3 year contract  basis) Please forward  an offer to buy a FTNX Index listed product carrying the current  transaction code or ORF Our  details are as follows; We wish consider  buying listed goods on the FIBP at ( Mark  one only) at:   FAS (  ) or CIF (   )  as per ICC incoterms as current. Port of destination: MT quantity sought monthly for : ORF: Corporate  Name : CEO or Import manager name: Full corporate address: Phone number ( with area codes): Mobile number: Secure email address : Date : Print Name  Signed  Return to FTN _smice@bigpond.com as a PDF. Offer advised to the end buyer ( if accepted) for their consideration within 3 days.