Intending Brokers/Facilitators
Intending
broker/Facilitator-
For intending brokers,
first timers, the things you have to do
is to get yourself familiar with shipping terms, pricing of products and
procedure. You must have an Internet connection, a functional phone line and (a
skype ID for video calling) NB: skype is for those that want to trade
internationally. Also have a valid current account and a valid current
domiciliary account.
A. Trading Terms
Here’s
a list of Trading terms in the oil and gas sector you have to be familiar with
below
“NOR”
Notice of readiness. This is what
the captain of the loaded vessel issues to the captain of the empty vessel
notifying them of its position and readiness
“Marine
ATB” authority to
Board. This is what the Captain of the
loaded vessel issues to the buyer’s supercargo/ inspector on the orders of the
seller before they can come on board.
“ATB
Format” This is
what the buyer gives to the seller for issuance of Marine ATB. It contains the
International passport, name of the supercargo/Inspector and company they work
for.
“Supercargo” A person that the buyer gives the
responsibility to go and confirm product on board a loaded vessel
“TTO” Shall mean Tanker Take Over.
“TTT” Shall mean Tanker to
Tanker Transfer
“FOB” Shall mean Free On
board
“Pregnant vessel” Shall mean a loaded vessel
“POP” shall mean Proof of product
“QnQ” Shall me Quantity and
Quality
“Bill
of Lading” The official document,
issued at the Loading
Port
“Loading
Date” The date mutually accepted by both the Seller and the Buyer as the
date on which the nominated International Surveyor Company has ascertained the
quantity and quality of the Crude Oil pumped into the Buyer’s designated
Vessel.
“Execution
Date” The date on which the
Seller and the Buyer receive their respective faxed copies of this Agreement,
or as may be indicated otherwise in this Agreement.
“Platt’s”
Platt’s McGraw Hill, London
“NNPC” shall mean Nigerian National
Petroleum Corporation.
“ASTM/IP”
Institute of Petroleum now known
as the Energy Institute. American Society for Testing and Materials, is the
internationally recognized Institute, that approved all Standards, Tests and
Procedures used in the Oil Industry and as referred to in this Contract is the
latest ASTM/IP Petroleum Measurement Tables latest revised edition in enforce
to date.
“Affiliate”
shall mean any company or corporation
of Seller or Buyer which owns directly or indirectly fifty (50) percent or more
of the shares carrying voting rights of such Party (Party company) and any
company or corporation other than such Party of which such parent company or
such Party owns directly or indirectly fifty (50) percent or more of the shares
carrying voting rights.
“API”
shall mean American
Petroleum Institute. Reference: AMERICAN PETROLEUM INSTITUTE STANDARDS in
effect as of JULY 1, 1993.
“Agreement”
shall mean the CRUDE OIL Sales /
Purchase Agreement of which these specific provisions agreed to between Buyer
and Seller form the conditions of sale and purchase.
”CIF” shall mean Chartered Insured
freight.
“Cargo” shall
mean any particular quantity of the specified Crude Oil loaded into vessel as
set out in this Agreement and includes partial cargo loads.
“Part
Cargo” shall mean when a Cargo
is discharged in more than one Discharge
Port or received by more than one
receiver at the Discharge
Port.
“Completion of Discharge -COD”
shall, with respect to a Cargo,
means the final disconnection of vessel’s discharge hose(s) following the
discharge thereof.
“Commodity” or “Crude Oil”
shall mean Nigerian origin Standard
Export Grade “Bonny Light“ Crude Oil (“BLCO”) in Bulk as specified in Clauses 4
and 6 with Specifications, as specified by NNPC, and set forth in Annex
“A” to this Agreement. The maximum API gravity for BLCO is 37 @ 60°F and the Sulphur
“Grade” shall
mean grade of the Crude Oil specified in this Agreement.
“Day” shall
mean calendar day
“Month” shall
mean a calendar month.
“Quarter”
shall mean a period of the
three (3) consecutive months commencing on the first (1st) day of January, or the
first (1st)
day of April or the first (1st) day of July or first (1st) day of October.
“Year” shall mean a calendar year
commencing on the first (1st) day of January.
“Discharge Port
“Part
Cargo” shall mean when a Cargo
is discharged in more than one
Discharge Port or
received by more than one receiver at
The port.
“Dollars,”
“USD,” or “US Dollars” shall
mean dollars of the United
States of America
“LAYTIME”
shall mean the time allowed for the
vessel’s Cargo to be loaded /discharged without incurring demurrage (36 + 36
hours).
“Barrel”
shall mean a volume of
forty-two (42) U.S. 158 Litres
at 15.55 degrees Celsius.
“Metric
Ton” shall mean unit of weight
equal to one thousand (1000) Kilograms and one (1) metric Ton of Crude Oil
shall be equal to 7.4 Barrels of BLCO.
“Gallon”
A unit of volume equivalent
to 231 cubic inches or 0.3785 cubic meters, all measured at 60 degrees F
“Parties” shall mean Seller and Buyer
jointly.
“SBLC” shall mean Standby Letter of
Credit
“LC” shall mean Letter of
Credit
“BG” Shall me Bank Guarantee
“Vessel”
shall mean the ship, whether
owned or chartered or otherwise obtained by Seller and employed by Seller to
ship the Cargo to the Discharge Port
“Loaded
Vessel Documents” This
includes
1 Original Bill of Lading
2 Commercial
invoice
3 Tanker
Haulage report
4 Tanker
time sheet
5 Master’s
Report document
6 Certificate
of Quality and Quality
7 Certificate
of Origin
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