INDUSTRY'S GLOSSARY

LOC - Is a written undertaking by the buyer or the buyer’s bank known   as the issuing bank to pay a certain amount of money to the seller or   seller’s bank. The specific Bank makes the payment upon the   successful   presentation of the required documents by the Seller   within   the specified   time frame. Note that the Bank scrutinizes the   "Documents" and not the   "Goods" for making payment.

LCL - Less Container Load

LCO - Low Cycle Oil

LDO - Light Diesel Oil

LNG - Liquefied Natural Gas

LPFO - Light Petroleum Fuel Oil (D6)

LPG - Liquefied Petroleum Gas

LSD - Low Sulphur Diesel (D2)

LSFO - Low Sulphur Fuel Oil

LOI - Letter of intent. Document use for the purpose of providing info.   on   the Buyer's product requirements. It Isn't a binding document

MANDATE -  An authorized agent acting on behalf of an undisclosed   Principal (Buyer or Seller)

MATB - Marine Authority To Board

MSDS - Material Safety Data Sheet

METRIC TON - A measure of weight equivalent to one thousand 

 kilogram mass (1,000 kg).

MON - Motor Octane Number

MOQ - Minimum Order Quantity

MOU - Memorandum Of Understanding. Is an agreement between two   or more parties outlined in a formal document. It is not legally binding   but signals the willingness of the parties to move forward with a   contract.

MT - Metric Ton 

MT103 - Is a SWIFT payment message type/format used for cash   transfer specifically for cross border/international wire transfers

MT199 - Message used by financial institutions to send or receive

 information for which another message type is not applicable. Used   between a corporate and its financial institution for which another     message  type is not applicable

MT700 - A Documentary Letter of Credit (DLC) or At Sight Letter of   Credit (Sight LC) is a financial instrument, issued by banks or trade   finance institutions through a SWIFT MT700 message, where   seller/exporters receive payment from the buyer/importer, once the   terms specified in the DLC are completely fulfilled.

MT760 - Is a SWIFT Message used to block funds in favor of   someone   other than the owner, collateralizing the asset via this   message while   allowing for loans and liens against it. When   an MT760 is issued, the   issuing bank puts a hold on the client’s funds,   blocking the client from   using them.

MT799 - Is a simple text message, sent bank to bank. This is used for a   bank to bank proof of funds, only. Is not a form of payment and it is   not a bank undertaking or promise to pay

NCNDA - Non Circumvention Non Disclosure Agreement.

NOR - Notice of Readiness

OPL - Out Port Limits 

PB -  Performance Bond (2%).

PLATTS - The organisation internationally recognised and accepted,   who publish official quotations of Petroleum products on a daily basis.

PAP - Prices & Procedures

PNG Gas - or Papua New Guinea Gas

POF - Proof of Funds

PPOP - Partial Proof of Product

PTAP - Port Terminal Access Permit

PTCC - Port Terminal Clearance Code

Q&Q - Quality & Quantity

QUID PRO QUO - Something For Something

Q88 - Questionnaires that is used to assess vessel suitability and risk

 when chartering tankers

REBCO -Russian Export Blend Crude

R&E - Rollover and Extension (contract)

RFQ - Request For Quote

RON - Research Octane Number; resistance to detonation 

RWA - Ready Willing and Able Letter, is a bank instrument that   verifies if   a bank or financial institution is ready to proceed on behalf   of a client in any number of various financial transactions.

SAYBOLT - Is an international inspection agency 

SBLC - Standby Letter of Credit,  is an arrangement in which a bank   guarantees payment to a "beneficiary" if something fails to happen. To   do so, the bank issues a document which describes the conditions that   will cause the bank will pay.

SCO - Soft Corporate Offer

SGS - Société Générale de Surveillance - is an international inspection     

 agency / Certificate Of Inspection

SKO - Kerosene Oil

SLOC -  Standard Letter of Credit, is a letter from a bank guaranteeing   that a   buyer's payment to a seller will be received on time and for the   correct   amount.​

SPA - Sales Purchase Agreement

SPOT PRICE - First Market Price

STA - Leased Tank Storage Agreement

STS - Ship To Ship

SWIFT - Is a vast messaging network used by banks and other financial   institutions to quickly, accurately, and securely send and receive   information, such as money transfer instructions

TDLC - Transferable Documentary Letter Of Credit

TRANSSHIPMENT - The transfer of oil between vessels

TITLE HOLDER - an authorised Person/s or Company that through   contract agreement, has the right to sale or trade a  property or on this   case   commodities, and has the documents to prove it.

TSA - Tank Storage Agreement

TSR - Tank Storage Receipt

T/T - Telegraphic Transfer, is an international wire of funds from the   buyer’s bank to the seller’s bank.

TTIA - Tank To Tank Injection Agreement

TTM - Table Top Meeting

TTO - Tanker Take Over

TTT - Tank To Tank

TTV - Tank To Vessel

VTV - Vessel To Vessel

ULSD - Ultra Low Sulfur Diesel

ULSFO - Ultra Low Sulfur Fuel Oil

WTI - West Texas Intermediate (Oil Prices Index)

ASWP - Any Safe Worldwide Port

ASTM - American Society for Testing and Materials, is the institute,   internationally recognized, that approved all Standards, Tests and   Procedures used in the Oil industry and to be referred in the Agreement   to   the latest revised edition with amendments in force to date

ATCS - Authorization To Sell & Collect

ATI - Authority To Inject

ATB - Authority To Board

ATS - Authority to Sell

ATV - Authority to Verify

Bbls - Barrels

BCL - Bank Comfort Letter

BOL - Bill Of Lading is a document issued by a carrier (or their agent to   acknowledge receipt of cargo for shipment. Although the term historically   related only to carriage by sea, a bill of lading may today be used for any   type of carriage of goods  

BLC - Bank Letter of Credit

BLCO - Bonny Light Crude Oil (from Nigeria)

BG/MT760 - Is an irrevocable commitment issued by a bank on behalf of   their customers. Whereas they have entered into a contract to buy goods   or   perform their projects. BG (Bank Guarantee) is a promise from buyer   to meet all financial   obligations to the supplier in the event of default.

BPG - Bank Performance Guarantee 

BR - Bank Reference

CAD - Cash Against Documents ,are transactions that protect them by     ensuring that  the products are of the quality promised and in the   quantity   that was  requested. After approving the shipment, the   buyer pays the   financial   institution the pre-arranged amount for the   consignment. Once   receiving   the payment, it is sent to the exporter

CCI - Conditional Commercial Invoice 

CDTA - Conditional Dip Test Authorization

CHARTER PARTY AGREEMENT - Is a contract for the hire of a named vessel   for a specified period of time.

CI - Commercial Invoice

CI - Compression Ignition 

C&D - Cease And Desist

CIF - Cost Insurance, Freight. The seller is responsible for the contract of   the   carrier and also for the payment of all, costs of pre-carriage,   insurance, and   delivery of the goods to the named port of destination

CIQ - Customer Information Quality

COA - Certificate Of Analysis

CFPP - Cold Filter Plugging Point

CP - Corporate Profile

CP - Cash Penalty

CPA -Charter Party Agreement - the charter, lease or other agreement that

 Seller as the charterer, enters into with the owner of the Vessel for

 transporting a Cargo of the Product under the terms of this Agreement.

D/A - Document against Acceptance, an arrangement in which an exporter

 instructs a bank to hand over shipping and title documents to an importer   only if the importer accepts the accompanying bill of exchange or draft by   signing it.

DEMURRAGE - A charge payable to the owner of a chartered ship in   respect of failure to load or discharge the ship within the time agreed

DD - Due Diligence

DI - Diesel Index 

DLC - Documentary Letter of Credit

D/P - Documents against Payment is an arrangement under which an   exporter instructs the presenting bank to hand over shipping and title   documents  to the importer only if the importer fully pays the   accompanying bill of exchange or draft.

DTA - Dip Test Authorization

DTAR - Dip Test Analysis Report

ESCROW ACCOUNT - is a legal concept describing a financial instrument

 whereby an asset or escrow money is held by a third party on behalf of

 two other parties that are in the process of completing a transaction.

ESPO - East Siberia - Pacific Ocean, crude oil.

ETA - Estimated Time of Arrival

FCL - Full Container Load

FCO - Full Corporate Offer

FIDUCIARY ACCOUNT - Savings or deposit account the funds of which are   owned by one party but are managed by another (such as an agent, bank,   or trustee) for the owner's, or a beneficiary's, benefit.

FOB - Free On Board, is a term in international commercial law specifying     at   what point respective obligations, costs, and risk involved in the   delivery of   goods shift from the seller to the buyer under the Incoterms   standard   published by the International Chamber of Commerce

FPOP - Full Proof of Product

GTL - Gas To Liquid 

HDSO - High Density Silicone Oil 

HOBC - Hi-octane Blending compound 

HSD - High Speed Diesel

HSFO - High Sulphur Fuel Oil

HSO - Heavy Silicone Oil

ICC - International Chamber of Commerce

ICPO - Irrevocable Corporate Purchase Order

IDLC - Irrevocable Documentary Letter of Credit

INTERMEDIARIES - a person/s or company that intermediates on the sales   of commodities between Title Holders and Buyers, Mandate and Buyers   etc. for commission revenues

IMFPA - Irrevocable Master Fee Protection Agreement

IMO - The International Maritime Organization is a specialized agency   of   the United Nations that is responsible for measures to improve the   safety   and security of international shipping and to prevent   marine pollution from   ships.

IPL - In Port Limit (Shipping).

IPOP - Initial Proof Of Product

IRDLC - Irrevocable Revolving Documentary Letter of Credit. Payment by

 Irrevocable, Transferable, Auto-Revolving for one month’s shipment value,   Documentary Letter of Credit

IS - Injection Schedule

JV - A joint venture is a business arrangement in which two or more parties

 agree to pool their resources for the purpose of accomplishing a specific

 task. This task can be a new project or any other business activity.

KYC - Know Your Customer

LAYCAN - This is the abbreviation used for the “Laydays and Cancelling   Clause” in a charterparty. The clause provides for the earliest time when   the charterer expects the master of the vessel to give a Notice of   Readiness and for laytime to commence and also gives the charterer an   option to cancel the charter if this event does not occur before a certain   date.

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