kianpetroleum

Brokerage services for purchasing from the international ring of the commodity and energy exchange

The commodities and energy exchange, as one of the most reputable and transparent trading platforms in the world, offers unparalleled opportunities for traders and investors. These markets provide a secure and legal environment for transactions, helping to increase trust and confidence among companies and investors.

The commercial unit of Kian Petroleum Services Company, registered under number 17727, is the official representative of KIAN GROUP İÇ VE DIŞ TİCARET LİMİTED, registered under number 3003105 in Turkey. This company, with its energy and commodities exchange registration code, the Gulf Industry Trade Company’s auction registration code, and the Iranol Oil Company’s auction registration code, provides specialized and transparent services for purchasing from the export ring of the commodities and energy exchange

Kian Petroleum's brokerage services for purchasing from the international commodities and energy exchange ring

خدمات کارگزاری شرکت کیان پترولیوم در خرید از رینگ بین‌المللی بورس کالا و انرژی

Specialized consulting

The first and most important step to entering the commodities and energy exchange is having adequate knowledge and information. Kian Petroleum, with a team of specialized and experienced consultants, assists you in market analysis and evaluation, selecting the best products, and timing your purchases effectively. This specialized consulting in the field of gas and gas products helps you enter the market with confidence and full awareness, enabling you to make better investment decisions

Facilitating administrative and legal procedures

Purchasing from the commodities and energy exchange requires completing specific administrative steps to ensure that all legal and regulatory requirements are met. Kian Petroleum simplifies the process of buying from the international commodities and energy exchange ring by handling many of the administrative and legal procedures. From preparing and submitting documents to obtaining necessary permits and approvals, all steps are managed by our professional team so you can focus on your transactions with peace of mind

Ongoing support

The support team at Kian Petroleum consists of experienced specialists in the field of purchasing oil, gas, and petrochemical products. This team will assist you throughout the transaction process by providing suitable solutions to your questions and issues. Our ongoing support ensures that you receive the necessary advice and guidance at every stage of buying and selling

Providing market reports and analyses

One of Kian Petroleum's valuable services is providing periodic market reports and analyses. These reports are prepared using reputable publications such as Platts and Saudi Aramco. They help you make more informed decisions with a comprehensive and accurate understanding of market conditions. Our market analyses include price trend assessments, supply and demand evaluations, and future market forecasts

The first step is to submit the necessary documents

Submitting a formal request (LOI)

is one of the important steps in the purchasing process from the commodities exchange. This stage includes the following

The formal request (LOI) includes submitting financial documentation for the amount specified by the buyer. This documentation must demonstrate the buyer’s financial capacity to complete the transaction and be verified by reputable authorities

The buyer must introduce a reputable broker for the deposit. This broker acts as a financial intermediary between the buyer and the seller, ensuring that all required amounts are correctly deposited and settled

The buyer must accept the gas analysis provided by the seller. This analysis includes the technical and qualitative specifications of the gas and must be carefully reviewed and confirmed to ensure that the product meets the buyer’s needs and expectations

The buyer must accept all terms and conditions set by the National Iranian Gas Company and the National Iranian Oil Products Distribution Company without any modifications. These terms include payment procedures, delivery scheduling, and other legal and operational requirements

After accepting all conditions, a proforma invoice is issued in the buyer’s name. The proforma invoice includes detailed information about the transaction, such as quantity, price, payment terms, and delivery conditions, and serves as an official document between the buyer and the seller

The buyer must meticulously adhere to all terms outlined in the proforma invoice. These terms include payment procedures, delivery scheduling, and other financial and operational commitments that must be fully and timely executed

Providing a resume with the initial request

To submit an initial request, the buyer must provide a clear and verifiable resume. This resume should include details relevant to the buyer’s activities and financial capabilities. If the buyer is unable to provide a resume, they must instead provide a commitment to purchase and financial verification. This commitment ensures that the buyer has sufficient financial resources to complete the transaction 

Submitting documents to the National Iranian Gas Company and the National Iranian Oil Products Distribution Company

At this stage, the buyer must provide the following documents to the National Iranian Gas Company and the National Iranian Oil Products Distribution Company: 

  • Formal Request: Submit a request to the National Iranian Gas Company and the National Iranian Oil Products Distribution Company based on the exchange’s notice of offer
  • Buyer’s Resume: Attach the buyer’s resume to the request
  • Financial Verification: Provide financial verification for the total order amount
  • Passport Copy: Provide a copy of the buyer’s passport
  • Company Registration Page Copy: Provide a copy of the company registration page showing the names of authorized signatories. This document must be translated and certified by the Iranian embassy or one of its consular offices
  • Economic Code: Provide the economic code for domestic buyers

Reviewing Documents and Signing the Contract

After submitting the documents, the National Iranian Gas Company and the National Iranian Oil Products Distribution Company will review the buyer’s documents and records. If approved, the buyer will be invited to proceed with signing the purchase contract and deposit the transaction amount to the broker 

Second Stage: Prepayment

To conduct transactions on the energy and commodities exchanges, a prepayment is mandatory, with the amount determined based on international rates. For the energy exchange, 10% of the transaction value must be deposited as a prepayment, and for the commodities exchange, 5% of the transaction value must be deposited.

The prepayment serves as a guarantee for the buyer’s financial commitments. This amount is intended to cover exchange fees, brokerage service commissions, and potential penalties. The prepayment must be deposited into the account no later than one hour before the start of the trading session 

Third Stage: Payment

To complete the transaction and settle 100% of the purchased product, payment must be made exclusively in foreign currency. The settlement period, according to regulations, is up to 5 business days after purchasing from the commodities and energy exchanges, and this settlement must be made in foreign currency to an account outside of Iran. If there is a delay and payment is made during the second 5 business days, a penalty will be applied

Fourth Stage: Delivery of Goods

The delivery of goods on the commodities and energy exchanges is governed by specific regulations and procedures to ensure transparency and fairness in the transaction process. Buyers and sellers are required to adhere to the following steps and conditions to ensure the quality and quantity of the goods and to protect the rights of both parties: 

Inspection and Quality Control

The quality characteristics of the delivered product must match the existing analysis and the agreement between the parties. These characteristics may change based on exchange notices and decisions made by the supplier. To ensure the quality of the delivered product, the buyer can appoint an inspector at their own expense to examine the product’s quality. Otherwise, the quality report provided by the seller will be considered valid, and no objections regarding this report will be accepted

Determining the Quantity of Goods

The quantity of the delivered product to the buyer is determined based on the weight measured at the delivery location. Weighing is carried out using the supplier’s equipment and instruments to ensure accuracy and precision in the measurements

Time and Place of Delivery

The delivery of goods must occur at the time and place specified in the contract. If there is an inability to deliver the goods at the agreed time, the parties must promptly notify each other and establish a new agreement for the delivery time. In the case of a delay in picking up the product, a grace period will be allowed for the buyer, after which a penalty will be imposed for the failure to collect the shipment

Responsibilities and Costs

All costs related to weighing, loading, customs, port fees, and other associated expenses are the responsibility of the buyer. Banking-related costs are also the buyer’s responsibility. In the case of exporting goods through maritime borders, all financial and legal responsibilities for the transfer of the goods after leaving the delivery location are assumed by the buyer

HSE Requirements, Penalties, Obligations, and Legal Documents

Compliance with HSE (Health, Safety, and Environment) requirements by the transportation contractors introduced by the buyer is mandatory. Adhering to these requirements is crucial in all industries, especially in the oil and gas sector. If non-compliance with HSE requirements is observed, the loading process will be halted, and necessary measures will be taken

Final Words

Given the sensitive and precise stages involved in purchasing gas and gas products from the commodities and energy exchanges, partnering with a reputable and specialized company like Kian Petroleum can make your buying process easier and more secure. Transparency in transactions and expertise in gas and gas products are two key attributes of Kian Petroleum that make it a suitable choice for you. For more information and to benefit from Kian Petroleum’s professional services, please contact us