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CRUDE OIL TRANSACTION GLOSSARYKolapo Adenekan

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Kolapo Adenekan
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CRUDE OIL TRANSACTION GLOSSARY

Apr 9, 2015
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Here is a List of terms and acronyms used in Oil Transactions along

with explanations of what these terms mean. You will find that a
number of these terms are depreciated and not used in real oil
transactions and the reasons why. There are other terms that are
only used in the primary oil market (two principal transactions;
directly between oil producers and refineries, without using
intermediaries). This has been written to inform those that are in the
oil and petroleum of the proper procedures, contractual documents
and banking instruments that will actually work when there is a
principal intermediary serving both sides of the deal by occupying a
role as a buyer/seller in the middle.
OIL TRANSACTION GLOSSARY
ASWP
ATB

BCL
BG
LOI
NCND
SPA
ICPO
IMFPA
TTT
TTO
FOB
POP
ATS
CIF
ICC

POF
SBLC
PB
BLCO
DLC
RWA

ASWP
Not officially an incoterm, but is commonly used in sellers quotes
as, e.g. CIF ASWP, and is widely accepted. CIF ASWP in a quote
implies that CIF shipment would cost the same for delivery to any
safe port in the world, whatever the distance from source.
If this term is used in a quote the buyer should get clarification. A
vessel chartered to Cotonou, or Ghana costs a lot less than a vessel
chartered to China. This is a critical price consideration and usually
indicates an over-generalization on the sellers part.
This term may also be a clue to a buyer that they may be able to get
a better price if their POD is close to the country of origin.
ATB

ATB means Authority To Board

Used for oil shipments This is usually a SATCOM message issued by
the ship captain, it provides the authority to enable the buyer to
board the vessel to confirm cargo availability, quantity and quality. It
is usually given to a supercargo team and inspector to do a dip test.
You can not board a cargo or oil vessel without this permission.
BCL
BCL means a Bank Comfort Letter
Bank Comfort Letter
Also known as a Bank Capability Letter, or Bank Confirmation Letter,
this is a letter from the buyers bank, sent through the SWIFT system
indicating the buyers capability to purchase by confirming that
there are funds available to make that financial obligation. It is not
guarantee of payment and can not be drawn upon by the sellers
bank. Therefore it is not an actionable banking instrument and is
used in the oil business only as a proof of funds.
BG
BG means a Bank Guarantee
A banking instrument sent through the SWIFT system indication that
there are a funds that are set aside (blocked) to make a purchase. A
BG is stronger than a bank comfort letter but is still not an
actionable banking instrument, meaning it can not be drawn upon
by the Sellers bank. it is strong enough to get a vessel loaded but
not usually strong enough to warrant the sellers bank to issue a
performance bond. It can and is usually used as a place holder until

there is a final determination of the cargo via a Q&Q test and the
delivery documents are presented at the sellers bank for payment.
Then it is common that payment is made by a standard wire
transfer, an MT103.
LOI
Letter of Intent A letter of Intent is supposed to inform a supplier of
the intent of the buyer, that the buyer really wants to purchase. A
letter of Intent is a non binding document issued by the buyer. Often
a seller will hope to secure the sale with a letter of intent. Now let
me ask, is a non binding document a security of anything? No. It is
only the offer, signed by the buyer that is binding by International
and English standing law. Often sellers hope to, at the same time,
get the banking information of the buyer, but why would the buyer
offer banking instruments if he doesnt even know if there is a real
product being offered? Only the Signed Offer tells the buyer the
intent of the supplier. He does not know if there is a seller or if the
seller even wants to sell a product unless he gets a signed offer from
the seller. Now, what have the courts said in this matter. There have
been instances where the buyer has been sued and damages
awarded even though he didnt know if there was product being
offered. You can see the mess this document offers you can get
sued for sending a non binding document when you dont even
know if there is a real product that the supposed seller may be
holding. GABRICH Global Services Limited does not send a Letter of
Intent to anyone. GABRICH Global Services Limited does not offer
banking details when we have no knowledge if a seller is real or if

the seller actually has product or if the seller really wants to sell.

NCND
Non Circumvention Non Disclosure = The purpose of this document
is to protect the agent who wishes to earn a commission for
connecting the Buyer and Supplier. Of course if either of these two
wish to break this agreement, they can for just about any
conceivable miniscule error. It is nearly impossible to prove
circumvention since the only way these two principals can know
each other is because the agent passed information that he
shouldnt have. And then try and get compensation from two billion
dollar companies that can afford stall until you die. GABRICH Global
Services Limited does not use these documents in some of our
transactions.

SPA
Sales And Purchase Agreement

ICPO
Irrevocable Corporate Purchase Order(ICPO), Is a document similar
to a letter of intent (LOI) used by companies to communicate their
intent to enter into a transaction with a foreign-based company and
provide verification of purchasing terms, banking information, and
company financials.

IMFPA
Irrevocable Master Fees Protection Agreement.
TTT
Tanker To Tank

TTO
Tanker Take Over

FOB
Freight On Board".
Freight costs is determined by the suffix "Origin" or "Destination"
after "FOB." "FOB Origin" indicates that the individual or
organization originating the purchase (receiving the goods) is
responsible for freight costs/liability. "FOB Destination" indicates that
the person or organization receiving the order (sending the goods) is
responsible for freight costs/liability. Specific terms of the agreement
can vary widely, in particular which party (buyer or seller) pays for
which shipment and loading costs, and/or where responsibility for
the goods is transferred.

POP
Proof Of Product

ATS
Authority To Sell

CIF
Cost, Insurance and Freight - CIF'
A trade term requiring the seller to arrange for the carriage of goods
by sea to a port of destination, and provide the buyer with the
documents necessary to obtain the goods from the carrier.
Investopedia explains 'Cost, Insurance and Freight - CIF'
Contracts involving international transportation often contain
abbreviated trade terms that describe matters such as the time and
place of delivery, payment, when the risk of loss shifts from the
seller to the buyer and who pays the costs of freight and insurance.
The most commonly known trade terms are Incoterms, published by
the International Chamber of Commerce (ICC). These are often
identical in form to domestic terms (such as the American Uniform
Commercial Code), but have different meanings. As a result, parties
to a contract must expressly indicate the governing law of their
terms.
ICC
International Chamber Of Commerce

POF
Proof Of Fund
SBLC
Standby Letter of Credit
PB
Performance Bond

BLCO
Bonny Light Crude Oil
DLC
Documentary Letter of Credit
RWA
Ready, Willing and Able to issue to them a 2% Performance Bond

We have strong global business network with Freelance Facilitators

to International Crude Oil Buyers, working with us in one reliable
platform and helping to provide us with reputable buyers.
Having access to us, means that you have gotten direct contact with

eignt NNPC Authorized Fiduciary Sellers of NNPC OFF-OPEC Crude

Oil- Direct Terminal Loading.
We are talking about TRIED, TESTED AND TRUSTED Fiduciary Sellers
of Bonny Light Crude Oil (BLCO).
CONTACT US TODAY:
We will provide you everything information you need to build your
trust and execute crude oil purchase in Nigeria.
We Have CROSS AFRICAN COMPETENCY . . . Beyond Where Hope
Survives.

We look forward connecting with us

PROVIDING 24/7HRS SERVICE DELIVERY, CONTACT US TODAY,
Email:kolapo.adenekan@gmail.com
Skype:kolapo.adenekan
Phone:+2348105847176
Thank You
Adenekan


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Larry Brumsey

Brumsey Oil & Energy Services LLC

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I didn't see a definition for the abbreviation NOR?

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5 months ago
mark chung

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Levi's

Chip Bergh

President and CEO, Levi Strauss & Co

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An Open Letter to Customers: Our Weapons

Policy
Nov 30, 2016
97,596 views
1,954 Likes

494 Comments
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Dear Customers,

The debate in the U.S. over gun safety and gun rights is as complex
as it is divisive. As a former army officer, a father and business
leader, Ive heard the arguments from all sides. And, as CEO of a
163-year-old company whose products and presence rest at the
intersection of culture and community in more than 110 countries
around the world, I feel a tremendous responsibility to share our
position on the issue, now, at a time when clarity is paramount.
Providing a safe environment to work and shop is a top priority for
us at Levi Strauss & Co. That imperative is quickly challenged,
however, when a weapon is carried into one of our stores. Recently,
we had an incident in one of our stores where a gun inadvertently
went off, injuring the customer who was carrying it.
So, while we understand the heartfelt and strongly-held opinions on
both sides of the gun debate, it is with the safety and security of our
employees and customers in mind that we respectfully ask people
not to bring firearms into our stores, offices or facilities, even in
states where its permitted by law. Of course, authorized members
of law enforcement are an exception.
With stores in Paris, Nice and Orlando, and the companys European
headquarters in Brussels, Ive thought more about safety in the past
year than in the previous three decades of my career because of
how close to home so many incidents with guns have come to
impacting people working for this company.

We operate in hundreds of stores across every state in the U.S., and

laws are different in each one. We know that the presence of
firearms in our stores creates an unsettling environment for many of
our employees and customers. We also know that trying to enforce a
ban could potentially undermine the purpose of the ban itself:
safety. With that in mind weve made this decision as a business a
request not a mandate and we sincerely hope responsible gun
owners will respect our position.
It boils down to this: you shouldnt have to be concerned about your
safety while shopping for clothes or trying on a pair of jeans. Simply
put, firearms don't belong in either of those settings. In the end, I
believe we have an obligation to our employees and customers to
ensure a safe environment and keeping firearms out of our stores
and offices will get us one step closer to achieving that reality.
Sincerely,
Chip Bergh
President and Chief Executive Officer, Levi Strauss & Co.

o
o

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Chip Bergh