Trading & Operational Procedures
Transparent, structured workflows for every delivery mode — from FOB tank transfers to CIF ship-to-ship operations. Each procedure follows international petroleum trading standards.
Standard Transaction Flow
Procedure No. 1 — FOB Tank-to-Tank (TTT)
Standard FOB Tank-to-Tank operating procedure — injection from Seller's shore tank into Buyer's nominated tank at the agreed loading port
ICPO & CIS
Buyer submits ICPO with Company Information Sheet (CIS) and selects loading port (Jurong, Rotterdam, Houston, Fujairah, or Tanjung Bruas).
Commercial Invoice (CI)
Seller issues Commercial Invoice with product details, price, quantity, and delivery terms.
CI Endorsement
Buyer signs and returns the CI with company seal, making it legally binding.
Proof of Product (POP)
Seller provides the following documents: Tank Storage Receipt (TSR); Injection Report (IR); Certificate of Origin; Product Passport / Specifications; Authorization for TTT Operation; UDTA (Unconditional Dip Test Authorization).
Dip Test
Buyer conducts dip test (or appoints an inspector) to verify quantity and quality. All costs are borne by the Buyer.
Payment & Injection
After successful dip test and payment, product is injected into Buyer's nominated tank. Title transfers upon completion of injection.
Final Documents
Seller releases Bill of Lading, Certificate of Origin, and full export documents.
Procedure No. 2 — FOB Tank-to-Vessel (TTV)
Standard FOB transaction procedure — loading from shore storage directly onto Buyer's nominated vessel
ICPO & Buyer Documents
Buyer issues an Irrevocable Corporate Purchase Order (ICPO) addressed to Seller, together with: Buyer's Company Registration Certificate, Buyer's Corporate Profile, copy of authorized signatory passport, Buyer's banking details for verification purposes, and NCNDA/IMFPA duly signed by all involved parties.
Draft CI & Working Procedures
Seller issues to Buyer the Draft Commercial Invoice (CI) for the available quantity of product in tank, together with Seller's working procedures. Buyer signs and returns the Commercial Invoice as acceptance of the transaction terms.
Partial POP Issuance
Upon receipt of the signed CI, Seller issues the following Partial Proof of Product (POP) documents: Statement of Product Availability, Injection Report, Commitment to Supply, Tank Storage Receipt (TSR), Authorization to Verify (ATV) with the Tank Farm, Refinery Product Passport, Quality and Quantity Certificate, and Warehouse Receipt.
POP Verification & Vessel Nomination
Buyer verifies the POP documents with the Tank Farm / Terminal Operator. Upon successful verification, Buyer nominates its vessel and provides the Q88 Vessel Questionnaire, IMO number, vessel details and ETA to the loading terminal.
Dip Test Authorization
Seller issues Unconditional Dip Test Authorization (DTA) to Buyer and Buyer's appointed independent inspection company (SGS / Intertek / Bureau Veritas). Buyer may conduct Dip Test inspection at Buyer's cost to confirm product quantity and quality. All Tank Farm, terminal access, inspection services and operational charges required for the Dip Test shall be borne solely by the Buyer.
Loading Window & TTV Injection
Upon successful Dip Test confirmation, Seller schedules the loading window and coordinates Tank-to-Vessel (TTV) injection of the product into Buyer's nominated vessel.
Payment
Buyer makes full payment via MT103 wire transfer for the total value of the product after successful Dip Test and prior to or during loading, as mutually agreed. Payment shall include any applicable terminal handling charges and inspection costs.
Title Transfer & Shipping Documents
Upon confirmation of payment, Seller transfers title ownership of the product to Buyer and provides all relevant documentation, including: Bill of Lading, Certificate of Quantity, Certificate of Quality, Certificate of Origin, Ullage Report, Sample Receipt, Time Sheet, Cargo Manifest, and Master Receipt for Documents.
Commission Settlement
Buyer and Seller shall settle all intermediary commissions according to the signed NCNDA/IMFPA within 48 hours after receipt of payment.
Optional 1-Year SPA
Upon successful completion of the first lifting, Buyer and Seller may enter into a One (1) Year Sales and Purchase Agreement (SPA) with mutually agreed monthly liftings and delivery schedule.
Procedure — VTT (Vessel Tanker Take-Over)
Take-over of a loaded vessel at sea; payment in two tranches (5% + 95%) via USDT (TRC20) or T/T MT103.
ICPO Issuance
Buyer issues an official Irrevocable Corporate Purchase Order (ICPO) accepting Seller's terms and procedures.
Commercial Invoice & ATI
Seller issues the Commercial Invoice (CI) for the product quantity onboard the vessel. Buyer signs, endorses, and returns the CI together with the Authorization to Inject (ATI).
Proof of Product (POP)
Seller provides Buyer with POP documents for verification: Q&Q Report at Loading Port, Certificate of Origin, Bill of Lading (B/L), Ullage Report, Cargo Manifest, and Vessel Q88.
5% Advance Payment
Upon successful verification of the POP documents and vessel position, Buyer pays 5% of the total product value within 48 hours via USDT (TRC20) or T/T MT103 to Seller's nominated fiduciary bank account.
ATB & DTA Issuance
Upon confirmation of the 5% payment, Seller issues the Authorization to Board (ATB) and Dip Test Authorization (DTA). All shipping documents are re-issued in Buyer's name and the vessel proceeds to Buyer's designated tank storage facility.
95% Balance & Title Transfer
Buyer pays the remaining 95% balance after successful CIQ/SGS or equivalent inspection via USDT (TRC20) or T/T MT103. Injection into Buyer's tank storage commences and title ownership of the product is officially transferred to Buyer.
Commissions Settlement
Seller pays commissions to all intermediaries and authorized parties as stipulated in the signed NCNDA/IMFPA within 72 hours after completion of the transaction.
Procedure No. 3 — CIF
Delivered price including cost, insurance, and freight
ICPO Issuance
Buyer issues an Irrevocable Corporate Purchase Order (ICPO) including full banking details and company registration documents.
Due Diligence & Draft Documents
Seller conducts due diligence on the buyer and issues a draft Sales & Purchase Agreement (SPA) and Commercial Invoice (CI) for the buyer's review and signature.
SPA/CI Execution & Financial Instrument
Both parties sign and seal the SPA and CI. The buyer's bank issues the financial instrument (DLC or SBLC) to the seller's bank within five (5) banking days.
2% Performance Bond
Seller's bank posts a 2% Performance Bond (PB) to the buyer's bank, which activates the buyer's financial instrument.
Vessel Nomination & Full POP
Seller nominates the vessel, provides the charter party agreement, and furnishes the full Proof of Product (POP) shipping documents: Bill of Lading, SGS Quality/Quantity Report from the loading port, Certificate of Origin, and Vessel Details (Q88).
Vessel Sailing & ETA Updates
Vessel sails to the designated discharge port. Seller provides regular updates on the vessel's ETA throughout the voyage.
Discharge-Port SGS Inspection
Upon vessel arrival, an SGS inspection is conducted at the buyer's expense to verify the discharged quantity and quality of the product.
Discharge & MT103 Settlement
Product is discharged into the buyer's storage facility. Payment is released via MT103 within 72 hours against presentation of the discharge inspection report and original shipping documents.
Procedure No. 4 — CIF EN590 (Ningbo-Zhoushan Spot)
Spot delivery of EN590 to Ningbo-Zhoushan Port (China) — full lifecycle from CI signing to monthly continuation
Contract Signing
Buyer and Seller mutually accept the working procedure. Both parties duly sign the Commercial Invoice (CI), confirming that the agreed transaction procedures form an integral and unchanged part of the CI.
Seller Issues Partial PPOP Documents
After CI signing, Seller provides Buyer with Partial Proof of Product: Export License, Certificate of Origin, Product Passport, Product Commitment Letter of Supply, and Availability Statement of Product.
Buyer Prepares Funds and Notifies Seller
Buyer prepares full payment and formally notifies Seller in writing, providing Proof of Funds (POF), Tank Storage Agreement (TSA), and Oil Tank Farm Company Information.
Seller's Coordination with Buyer's Tank Farm
Seller's freight forwarder and shipping agent contact Buyer's oil tank farm company to verify storage readiness and discharge coordination. Upon successful verification, the transaction proceeds.
Docking and Initial Payment
Seller arranges docking within 24 hours after vessel arrival at China Port and issuance of Full POP documents. Customs clearance and Notice of Entry are coordinated; Buyer remits 5% of total contract value as prepayment.
Unloading and CIQ Testing
Seller's vessel docks at the designated port terminal. Product is unloaded into Buyer's storage tanks. Buyer arranges CIQ (China Inspection and Quarantine) testing to verify quality and specification.
Final Payment and Transfer of Ownership
Upon successful CIQ inspection, Buyer transfers the remaining 95% of contract value in USD. Ownership transfers immediately on full payment. Buyer may lift the product without physical movement. Per NCNDA/IMFPA, Seller disburses commissions to all intermediaries within 24 hours of receiving full payment.
Continuation of Supply
Subsequent shipments continue on a monthly basis under the same SPA terms and conditions.
Procedure No. 5 — STS (Ship-to-Ship Transfer)
Ship-to-Ship transfer at designated offshore or port location — full lifecycle from ICPO to long-term contract
Buyer Submission (Initiation)
Buyer issues an ICPO together with verification documents: company registration certificate, copy of authorized signatory's passport (data page), Buyer's CPA (Corporate Purchase Authorization), bank details and banker's contact information, signed NCNDA/IMFPA for intermediary protection, and written acceptance of Seller's STS operational procedure.
Vessel Nomination & Approval
Buyer nominates the vessel with full vessel details and laycan. Seller reviews and responds within 48 hours of receipt of CPA and vessel nomination, and shall not unreasonably reject a nomination. If rejected, Buyer nominates an alternative vessel within the agreed laycan window.
Commercial Agreement & Invoice
Seller issues a Commercial Invoice (CI) for Buyer's acceptance. Upon signature and mutual agreement of the CI, it becomes binding for execution of the STS operation.
Pre-Transfer Coordination
Buyer confirms the nominated vessel's ETA, full readiness for STS operation, and acceptance of port and operational coordination requirements. Seller then issues final operational clearance, including readiness confirmation for the STS transfer.
Performance Guarantee
Buyer provides a 10% Performance Guarantee (Standby instrument, blocked funds, or agreed equivalent). The guarantee is strictly for commitment assurance and operational readiness — it is not an advance payment — and remains valid until completion of the first lifting operation.
STS Operation & Costs
Seller is responsible for initial STS operational coordination and related costs. All verified STS-related costs are reimbursed by Buyer together with the product payment after successful transfer.
Dip Test & Transfer
A Dip Test is conducted jointly by both parties or appointed inspectors. Upon successful Dip Test confirmation, the STS transfer of product is executed into Buyer's nominated vessel.
Payment Terms (Buyer's Option)
Buyer settles payment via MT103 under one of two options — Option A: payment on vessel berthing and readiness, before injection; Option B: payment immediately after completion of product injection into Buyer's vessel. Payment includes the full product value plus approved STS operational costs (where applicable and validated).
Title Transfer & Documentation
Upon confirmed receipt of full payment, Seller transfers to Buyer: full title ownership of cargo, Bill of Lading, Certificate of Quantity, Certificate of Quality, Certificate of Origin, Ullage Report, Cargo Manifest, Time Sheet, and Master Receipt / operational release documents.
Intermediary Settlement
All intermediaries are paid in accordance with the signed NCNDA/IMFPA. Payment to intermediaries is completed within 48 hours after receipt of funds.
Long-Term Contract Option
Upon successful completion of the first lifting, both parties may proceed to sign a one-year renewable contract under mutually agreed terms.
Procedure No. 6 — TTM (FOB with TTM, Face-to-Face Moscow)
Tank-to-Mother-Vessel with mandatory Moscow meeting — Location: Moscow, Russia, Seller Title Holder Administrative Office
Seller's Initial Offer
Seller issues to the Buyer the Full Corporate Offer (FCO) with TTM procedures, ICPO template, and Bank Comfort Letter (BCL) template.
Buyer's Submission
Buyer submits ICPO, Company Profile, copy of authorized signatory's passport, and latest BCL to JSC Antipinsky Oil Refinery, Attn: Mr. Valery Kuznetsov.
Seller's Review & Draft Contract
Seller validates the Buyer's documents and issues a Draft Sales and Purchase Agreement (SPA) within three (3) international banking days, together with Commitment to Supply, Statement of Product Availability, and Refinery Laboratory Test Report (GOST R Passport).
Security Payment Arrangement
Buyer deposits a USD 500,000 security payment with a mutually appointed legal representative (Transaction Controller). The deposit is not an advance payment; it is refunded upon successful completion of the transaction or released to the Seller in the event of Buyer's non-performance.
Invitation Letter Issuance
Upon confirmation of the security deposit, Seller issues an Official Invitation Letter approved by the Ministry of Internal Affairs of the Russian Federation for up to three (3) Buyer representatives.
Travel Arrangements
Buyer purchases round-trip flight tickets and books accommodation as per the Invitation Letter recommendations. Seller/Refinery may arrange local logistics and support.
Arrival & Reception
Seller (Title Holder) confirms Buyer's arrival and arranges airport reception in Moscow.
TTM Meeting & Contract Execution
Buyer representatives attend a face-to-face (TTM) meeting at the Seller's Administrative Office to execute the SPA, sign the Commercial Invoice (CI), and receive the full Proof of Product (POP) documentation.
Dip Test & Logistics Submission
Buyer conducts a Dip Test at the Seller's storage tanks (Buyer's cost, SGS or equivalent) and submits the Charter Party Agreement (CPA) or vessel/tank details.
Initial Payment
Upon successful Dip Test and verification of POP documents, Buyer issues 30% payment via MT103 / TT to the Seller's designated account.
Product Injection / Loading
Seller proceeds with product injection into Buyer's tank or loading onto the vessel. Buyer confirms receipt/loading and remits the remaining 70% balance payment.
Commission Settlement
Seller (Title Holder) settles all intermediary commissions as per agreed terms.
Accepted Financial Instruments
All payment instruments must be issued or confirmed by a top-25 internationally ranked bank.
MT700 — Documentary Letter of Credit
Irrevocable documentary credit issued by buyer's bank in favor of seller. Payable at sight upon presentation of compliant shipping documents. Preferred for trial shipments.
SBLC — Standby Letter of Credit
Bank guarantee that serves as a secondary payment mechanism. Used for long-term contracts where the buyer makes direct payment and the SBLC covers default.
MT103 — Wire Transfer
Direct bank-to-bank wire transfer. Available for repeat buyers with established credit history. May require partial advance payment for new relationships.
Disclaimer: The procedures outlined on this website are for general informational purposes only. Actual commercial procedures may differ depending on the product type, prevailing market conditions, and the location where the product is to be received. All terms are subject to the final executed contract.
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