A licensed Philippine counterparty for recurring petroleum supply.
Zion Group, Inc. imports, stores and distributes refined petroleum products into the Philippine market as importer of record — building structured, recurring supply relationships with international refiners and trading houses rather than isolated spot transactions.
Recurring, not spot
Zion seeks direct long-term commercial relationships for the recurring purchase of petroleum products, with requirements defined on a monthly or annual basis alongside supplier commercial teams.
Importer of record
Through its subsidiary Octex KFR Corporation, Zion holds Department of Energy oil import and downstream licensing and Bureau of Customs importer accreditation, and files customs entries and DOE reporting in its own name.
Bank-backed offtake
Product is released to domestic off-takers only against an irrevocable letter of credit from a top-three Philippine universal bank, or a foreign bank of equivalent standing acceptable to the supplier.
The Philippines represents a significant market for imported petroleum products. Zion’s assessment of that market — and of the refining, supply, trading and international marketing capabilities of the major producers — is that the opportunity lies in a structured relationship focused on recurring requirements rather than isolated spot transactions, supported by domestic licensing, bonded storage and qualified off-takers.
Zion’s objective with any supplier is to be qualified as a commercial customer in the ordinary course, and then to build a sustainable framework for repeat purchases — with the scope to expand as further requirements are identified.
Ten product families across the barrel.
Ultra-low sulphur automotive diesel to EN 590, sulphur content not exceeding 10 mg/kg, verified by independent load-port inspection.
Jet A-1 aviation turbine fuel, motor gasoline and gasoline blendstocks.
Naphtha, LPG and natural gas liquids, marine fuels and fuel oil, petrochemicals and industrial solvents, lubricants, asphalt and bitumen.
Bonded storage on both sides of the archipelago.
Zion Group, Inc.
A Philippine corporation trading in refined petroleum products, headquartered in Cagayan de Oro City and operating as importer of record and domestic distributor.
What Zion is set up to do.
Zion exists to bring refined petroleum products into the Philippines on a repeatable basis and place them with qualified domestic off-takers. That means two things held together: a supply-side relationship with refiners and international trading houses that can commit to a recurring programme, and a domestic distribution capability — licences, bonded storage, customs standing and buyer relationships — that makes each cargo land cleanly.
The company approaches suppliers on the understanding that any supply remains subject to product availability, applicable specifications, commercial terms, logistics, credit requirements, regulatory compliance, customer qualification and final approvals. Specific products, technical specifications, trial quantities and recurring monthly or annual requirements are defined with the supplier’s own commercial teams as discussions progress.
Who you will be dealing with.
Product families of interest.
Zion’s preliminary areas of interest span the barrel, from ultra-low sulphur diesel through to heavy residues. Exact specifications, trial quantities and recurring volumes are agreed with each supplier.
EN590 10 ppm / Ultra-Low Sulphur Diesel
The company’s lead requirement and the product against which its supply framework is drafted. Automotive diesel conforming to the EN 590 standard specification.
Jet A-1 aviation fuel
Aviation turbine fuel for domestic carriers and into-plane suppliers.
Motor gasoline and gasoline blendstocks
Finished mogas grades and blendstocks for domestic blending.
Naphtha
As petrochemical feedstock and gasoline blending component.
LPG and natural gas liquids
Liquefied petroleum gas and associated NGL streams.
Marine fuels and fuel oil
Bunker grades and residual fuel oil for marine and industrial consumers.
Petrochemicals and industrial solvents
Chemical and solvent streams for domestic industrial off-takers.
Lubricants
Base oils and finished lubricant products.
Asphalt / bitumen
Paving and industrial grades for infrastructure programmes.
Other heavy products
Additional heavy and residual streams by agreement.
How diesel quality is defined and proven.
Standing to import, in Zion’s own name.
Zion’s value to an international supplier rests on being a licensed, accredited counterparty that can act as importer of record and carry the regulatory burden of a Philippine landing.
Importer of record duties.
Customs entries
Accurate and timely filing of all customs entries for each cargo, and the true and correct declaration of value, quantity and classification of the product.
DOE reporting
Reporting obligations attaching to a licensed downstream oil importer and distributor for each cargo received and released.
Duties, VAT and excise
Statutory obligations in respect of import duties, value-added tax and excise tax remain with Zion as importer of record, irrespective of which party funds them commercially.
Notification
Prompt notice to the supplier of any inquiry, audit or enforcement action by a Philippine regulatory or tax authority relating to a cargo, and good-faith cooperation in responding.
Representations Zion is prepared to give.
From laycan to reconciliation.
Zion works to a defined cargo lifecycle. Each shipment is confirmed individually under a cargo confirmation that sits beneath an umbrella supply agreement, so volumes, laycans and terms are agreed cargo by cargo without renegotiating the framework.
Cargo confirmation
Volume and tolerance, vessel and laycan, load and discharge ports, appointed inspector, and any cargo-specific payment or letter-of-credit terms, signed by both parties.
Load-port inspection
An independent inspector — SGS, Intertek, Bureau Veritas or equivalent, named and mutually agreed — issues a certificate of quantity and quality before the vessel departs. This is the proof of product.
Documents to Zion
Vessel nomination, bill of lading, certificate of origin and the independent inspection certificate, delivered ahead of the vessel’s estimated arrival at the discharge port.
Discharge into bonded storage
Risk passes at the vessel’s permanent hose connection, evidenced by the discharge report and ullage survey. Zion insures product in storage from that point, naming the supplier as loss payee or additional insured to the extent of any retained title interest.
Off-taker letter of credit
No product is sold to a domestic buyer until that buyer has posted an irrevocable domestic letter of credit, issued or confirmed by a Philippine universal bank ranked in the top three by assets — or a foreign bank of equivalent standing acceptable to the supplier — for not less than the invoice value.
Release against funds
Volume is released from the terminal to the off-taker on the issuing bank’s notice of fund release. Copies of each off-taker letter of credit, or written confirmation of issuance and key terms, are provided to the supplier.
Reconciliation
A written reconciliation statement — sale volumes and prices per off-taker, proceeds, costs applied, supporting invoices and bank advices — is delivered within ten business days of each off-taker sale being paid.
How variance is settled.
Visibility Zion is prepared to give a supplier.
Records open to inspection
Terminal inventory records sufficient to independently verify volumes received, stored and released against each cargo, inspectable by the supplier or its appointed representative on reasonable notice.
Right of audit
Sales, inventory and banking records relevant to a supply agreement made available for audit on reasonable notice — and at any time where a material discrepancy is reasonably suspected.
Title retention
Zion will contract on terms under which title to a cargo remains with the supplier until the supplier’s agreed cost basis and share of proceeds have been received in full.
Designated account
Sale proceeds are received into a designated account, with the option of a jointly controlled or escrow arrangement where a supplier requires it.
Open a commercial discussion.
Zion welcomes introductions to supply, trading and commercial teams, and is prepared to enter a supplier’s prospective customer registration and qualification process.
Cagayan de Oro City
Misamis Oriental 9000
Philippines