Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The trading house International Oil Trading (InterOil), with Head Quarters in Gibraltar, is looking for a Working Capital Finance of approx. USD 100 million
The trading house International Oil Trading ("InterOil"), with Head Quarters in Gibraltar, is looking for a Working Capital Finance of approx. USD 100 million with a tenor structure of 1 year. The financing is needed to support the main business purpose of the company InterOil - to buy and sell crude oil and related petrochemical products. The ultimate beneficiary of the financing is the main supplier of InterOil, the big russian oil producer JSC Russian Oil Company ("ROC"). The products purchased from ROC will be directly sold onto other customers of InterOil. The final buyers of InterOil are international oil consumers. InterOil already has a signed crude oil delivery contract with X-Oil International S.A., France ("X-Oil") a large international oil company based in Marseille. The contract covers a one year time frame and InterOil is contractually obliged to deliver in total 600,000 metric tons of crude oil to X- Oil. The contract further stipulates the quality of the product and it inidcates Russian Standard "REBCO" - Russian Export Blend Crude Oil. The actual Brent-Oil price is USD 52 per Barrel.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started