In a message dated 6/23/00 1:06:09 AM Eastern Daylight Time, [log in to unmask]
writes:

<< Regarding the oil scandal, I would like to say that I found reports of Mr.
 Samuel Sarr's comments on the issue particularly insulting.  For one thing,
 Mr. Sarr said that the $0.20 (twenty cents) per barrel that the contract
 specified as payment for the oil was reasonable.  I mentioned in my mid-May
 "Framework for peace" posting to the list that over the period (1996-1998)
 of the crude oil contract, the landed price for Nigerian crude varied from
 $14 to $20 per barrel, according to the US Dept. of Energy (DOE) figures.
  >>
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Katim,

I do not have the background on the oil and whether it was given to Gambia
altogether, or whether the Nigerians gave it to Gambia so that Gambia can
serve as what is called "Seller's Mandate" in the brokering business. If they
were given the oil outright, then Sam Sarr must indeed think the rest of us
are crazy.

However, If Gambia was merely offering the oil for Nigeria as brokers, or if
the oil was given to Gambia at a particular price below market price, and
they then could mark it up and keep the difference, then their reward from
the deal would either  be a commission paid to them as Seller's mandate in
the former, or the difference from the markup. The procedure in these oil
deals is that there is a regular market price based on a Platt, and then a
Gross discount per barrel or gallon off that price is offered to the Buyer.

The  commission in these oil deals is the difference between the Gross and
net discount, and this goes to the Seller's representative as well as any
other brokers or intermediaries involved in bringing Buyer and Seller
together. I do not know if this 0.20 that Sarr speaks of is a portion of this
commission.

One thing that is clear just from my experience, is that the British company
that sued was probably an intermediary group that got cheated out of their
portion of the commission. Good brokers will always make sure that how the
commission will be divided , and how much goes to whom is made a part of the
sales contract. This way, if one does not get their commission, they have the
copy of the contract to show as evidence in a law suit.I am sure  this is why
the Gambia government had to pay up when this British company sued.

Jabou Joh

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