INTRODUCTION
This project-finance model is available exclusively to public-sector entities or legally authorized government-owned companies. The purpose of this section is to provide a compliant overview of project financing supported by petroleum supply contracts. Under regulated international project-finance structures, governments may obtain long-term development funding backed by future petroleum deliveries, subject to due diligence, legal authorization, and contractual safeguards.
This model allows eligible public-sector borrowers to access substantial project financing for approved social and commercial development projects. Financing terms, limits, and conditions are determined through bank-to-bank compliance, sovereign authorization, and international project-finance standards. The borrower’s obligation is limited to supplying petroleum products to internationally recognized safe ports designated by the financing institution or its supporting bank.
Product pricing, delivery schedules, and supply obligations are determined contractually and must comply with international commercial rules. Petroleum supply typically begins after a defined percentage of project progress has been achieved, and deliveries are completed over a multi-year period under CIF terms to designated safe ports.
This model is a regulated project-finance mechanism. It does not involve upfront fees, interest-based lending, or speculative financial activity. All terms are governed by contractual agreements, sovereign authorization, and international compliance requirements.
Application formats, procedures, and draft Oil-Backed Contract Agreements are available upon request for qualified public-sector entities.
NOTE FOR PRIVATE SECTOR
Applications from private-sector companies may be considered only if they are officially supported and guaranteed by the relevant Ministry and possess lawful authorization to engage in petroleum supply contracts.
PROCEDURES FOR OIL-BACKED CONTRACT
Step 1: The client submits a Client Information Sheet (CIS/KYC), a brief proposal of its approved public project(s), and a Letter of Intent (LOI) with original authorization documents issued by the relevant Ministry. (Applicant must be from a non-sanctioned country with petroleum resources.)
Step 2: ADP conducts due diligence (DD) on all submitted documents within 5–7 working days.
Step 3: If the client meets eligibility criteria and complies with project-finance requirements, ADP issues a Letter of Acceptance (LOA), a Draft Contract, and a Letter of Intake confirming availability of financing. The Letter of Intake is issued by an ADP-selected international bank and may be verified directly by the Ministry. The Draft Contract remains open for lawful amendments.
Step 4: Upon approval, the final contract is signed directly between ADP and the authorized Ministry.
Step 5: After contract signing, the initial project disbursement is made to the designated project account within approximately 40 banking days. Initial disbursement typically ranges between 10% and 15% of the approved project cost. Subsequent payments follow the project’s verified work-progress reports.
Step 6: After 20% of the project is completed, the client begins fulfilling petroleum supply obligations according to the agreed schedule and contractual limits.
Step 7: Construction contracts for the project are awarded to qualified international companies through ICB-compliant procurement. Contractors are selected by ADP in coordination with the Ministry. Contractor profit margins follow the laws and norms of the host country.
Step 8: Project management and monitoring services are awarded to a qualified company selected by the Ministry or client. If the Ministry selects the construction company, then monitoring and management must be assigned to an ADP-approved firm. Monitoring fees are typically 2% of the project cost.
IMPORTANT NOTES
• Oil-backed contracts must be signed directly with the authorized Ministry or government-owned company. Third-party entities are not eligible.
• The Ministry must formally authorize ADP as the fund-management partner for the oil-backed financing program.
• The Ministry must be able to supply petroleum products to internationally recognized safe ports designated by ADP or its supporting bank, at contractually agreed pricing.
• Petroleum supply begins after a defined percentage of project funding has been disbursed. Total supply duration is determined contractually.
• Petroleum product selection is determined by ADP based on market, compliance, and logistical considerations.
All oil-backed financing activities are conducted under strict compliance with international banking regulations, sovereign authorization requirements, and global project-finance standards.