A procedure is the outlined steps of the transaction a buyer and seller must agree to a procedure before moving forward with any transaction.
SCO or soft corporate offer is the document that sellers issue listing
their products, the origin, supply, & pricing.
ICPO: This document is the purchase order that buyers issue when
they want to buy, they typically will attach the sellers procedure to this doc.
CIF & KYC: Client information sheet and KYC are docs that identify the
client and their company. This is usually mandatory in order to identify
the company & the buyers representative.
TSA & TSR: Tank storage agreement and tank storage receipt are documents that verify there is an actual tank for the oil to be transported to. All buyers must provide this in order to verify they can receive the oil from the seller.
Tank farms/VOPAK: Vopak is an example of a company that facilitates
the renting of tanks in “tank farms”, essentially storage units you rent
for the oil.
Meaning the seller loads the goods on the vessel & clears the goods for export. In this case after the goods are transferred to buyer, the buyer is responsible for the cost of the insurance & shipping. FOB is usually most cost efficient for the buyer & sellers alike since they don’t have to be responsible for goods after transferring.
The seller has ownership until delivery and has to pay until transferred. Buyers like it because of the convenience, there’s no risk for buyers during transit. Sellers prefer CIF since they can have higher margins, it places more risk on the seller but the seller can raise cost because of this.
IMFPA: It's a contract used in international trade, particularly for large-scale commodity transactions, to protect the fees or commissions owed to intermediaries (brokers or facilitators). The IMFPA ensures that the broker's fee is paid automatically from the buyer's or seller's account when the transaction is completed.
NCNDA: It's a contract designed to protect the confidentiality of information and protect the interests of intermediaries or brokers who facilitate deals. Specifically, it aims to prevent parties from bypassing the intermediary to deal directly with each other, potentially cutting them out of the commission.
These are all types of oil refined or unrefined that are for sale, A1 and EN590 diesel are in the most demand and the most common oil that is brokered.
PPM is a unit of measurement used to express the concentration of a substance in a mixture. It indicates the number of parts of one substance for every one million parts of the total mixture. PPM is commonly used to quantify the concentration of gases, liquids, or solids in various applications, such as monitoring for safety, quality control, and process efficiency.
Tank tank over, tank to vessel, tank to tank transfer all of these are methods used to transfer the commodity to the end buyer.
A legal contract between the owner of a vessel and the party (charterer) who wishes to use it to transport cargo. The Buyer or Seller may be responsible for providing the CPA depending on the Incoterms (e.g., CIF, FOB). The CPA ensures that the product can be moved legally and efficiently from seller’s storage or refinery to the buyer’s destination—especially in Tank-to-Vessel (TTV) transactions.
SBLCs (Standby Letters of Credit) and DLCs (Documentary Letters of Credit) are distinct financial instruments used in international trade, but they serve different purposes and have different requirements. SBLCs act as a guarantee or secondary payment method, while DLCs are primary payment instruments where the seller must present specific documents to receive payment. Buyer must issue SBLC/DLC from a Top 50 Global Bank
Buyer must issue SBLC/DLC from a Top 50 Global Bank
Commonly for sale in global energy markets:
UNREFINED (CRUDE OILS)
– Light Crude Oil (e.g., Brent, WTI, SLCO)
– Heavy Crude Oil
– Sweet Crude (low sulfur)
– Sour Crude (high sulfur)
– Bitumen / Oil Sands
– SLCO (Saudi Light Crude Oil)
REFINED PRODUCTS
Diesel & Jet Fuel:
– EN590 (10PPM ULSD – Ultra Low Sulfur Diesel)
– D2 Diesel (older spec)
– Jet A1 (commercial aviation)
– JP54 (military grade, mostly outdated)
Fuel Oils & Residuals:
– D6 Fuel Oil
– Mazut M100
– Marine Fuels (IFO 180, IFO 380, VLSFO)
Gas-Based Products:
– LPG (Liquefied Petroleum Gas – propane/butane mix)
– LNG (Liquefied Natural Gas – cooled methane)
– CNG (Compressed Natural Gas)
SGS is a global, independent inspection and certification company responsible for verifying the quantity and quality of fuel at both the loading point (e.g., refinery or origin port) and the destination (e.g., Rotterdam). These inspections ensure that the product shipped matches agreed specifications, that the full volume is delivered intact, and that no tampering or degradation has occurred during transit. This process helps protect all parties from fraud, substitution, or loss—and is often a required condition before the buyer’s bank will release payment via LC or MT103.
Proof of Product (POP) refers to a set of documents that verify the existence, quality, and availability of a fuel supply. These documents typically include product specifications such as fuel analysis reports, confirmation of origin and current storage location, verified quantity available, and evidence of allocation or lifting rights. Importantly, POP is not a promotional tool—it is a compliance measure issued only when a transaction is already progressing, often after buyer verification or financial instruments are in place. That’s why legitimate producers follow a strict policy: no verified storage, no Proof of Product.
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