Petroleum Working Glossary
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Fuel Trading Terms and Acronyms


A
Agreement – the Crude Oil Sales / Purchase Contract of which these specific provisions agreed between Buyer and Seller form the conditions of Sales and Purchase.

Allocations – Production Refinery Contracts

Affiliate – shall mean any company or corporation of seller or buyer which owns directly or indirectly fifty (50) present 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 - American Petroleum Institute - creates Petroleum Measurement Tables

API/ASTM – Standards referenced to this Agreement are those in effect as at July 1st 1993. In the event that such Standards are subsequently revised or modified or new standards are issued, the new revised or modified standards will apply. Each party must advise the other party to this Agreement, within three (3) months after such revisions, new or modified Standards are introduced and until such this standards shall be used.

API Gravity - is a measure of how heavy or light a petroleum liquid is compared to water

​          Light Crude Oil - has an API Gravity more than 31.1°
        * Medium Crude Oil – has an API Gravity between 22.3° and 31.1°
        Heavy Crude Oil – has an API Gravity less than 22.3°

ASTM - American Society of Testing and Materials

ASWP - Any Safe World Port

ATI – Tank Farm Storage Authorization (Letter to Inject)

ATS – Authority to Sell Letter (Refinery)

ATV - Authority to Verify

B
Barrels (Bbls) - Used for International trades - a volume of forty - two (42) US gallons corrected for temperature to (60) degrees Fahrenheit.

BCF – one Billion Cubic Feet of natural gas

BCFE – one Billion Cubic Feet of natural gas Equivalent

BCL - Bank Comfort Letter

Bill of Lading – the official document, issued at the load port after completion of the loading operations, stating, among other things, the ship’s loaded quality, expressed in Cubic Meters (M3) and in Metric Tons (MT) or barrels per the definitions herein. this document has to be signed in original by the ship’s Master and made out in accordance with the instruction hereinafter specified in the agreement.

BLC – Bank Letter of Credit

BLCO – Bonny Light Crude Oil (Nigeria)

BOE – Barrel of Oil (one barrel of oil equals 6,000 cubic feet of natural gas)

BP – Benchmark Price - the price per unit of quality of a commodity traded in the International Marketplace.

BPG – Bank Performance Guarantee

BR - Bank Reference

BTU - British Thermal Unit - The amount of energy required to raise the temperature of one pound of water by one Fahrenheit degree. One BTU is equivalent to 252 calories, 0.293 watt-hours or 1,055 joules.

C
Cargo - any particular quantity of the oil loaded into vessel as set out in this agreement includes Part Cargo.

CBM – coal bed methane - natural gas generated and trapped in coal seams.

CCI – Conditional Commercial Invoice

CCF – One Hundred Cubic Feet - One CCF is one hundred cubic feet of natural gas at standard distribution pressure of 14.73 pounds per square inch and 60° Fahrenheit.

CI - Commercial invoice / Dip Test (Storage Tank)/ Pay (Pay Invoice)

CIF – Cost, Interest, Freight - strictly as referred to in the interpretations defined by INCOTERMS, Edition 2010 with latest amendments.

CIQ – Certificate of Quality (Inspection)

Commodity – referred to as being Nigerian Bonny Light Crude Oil, elsewhere in the agreement also referred to as Nigerian Light, which specifications, as specified by NNPC will be furnished by the Seller and added as Appendix “A” to this contract agreement.

Completion of Discharge – in respect of a cargo, mean the final disconnection of vessel’s discharge hose(s) following the discharge thereof.

CNG – Compressed Natural Gas

CP – Company (Customer) Profile

D
D6 (Virgin) – See wording under LPFO

Day – calendar day

D/D – Due Diligence

Discharge Port(s) - the port(s) nominated by buyer and accepted by seller for discharge of such cargo in accordance with the agreement.

DLC – Documentary Letter of Credit

DOE - Department of Energy A cabinet-level federal agency created in 1977 to replace the Federal Energy Administration. The DOE manages national energy policy, nuclear power and nuclear weapons programs, and the national energy research labs.

Dollars - USD – dollars of the United States of America
DTA – Dip Test Authorization

DTAR – Dip Test Analysis Report

E
EIA - Energy Information Administration An agency within the U.S. Department of Energy. EIA provides energy data, forecasts and analyses.

ETA – Estimated Time of Arrival

EU – Europe or European

Execution Date - the date on which the seller and the buyer receive their respective faxed copies of this agreement, or as ay be indicated otherwise in The Agreement.

EXW - Ex-Work’s - Buyer pays for all costs of transport from pickup at Supplier’s premises.

F
FAS – Free Along side Ship Supplier pays cost to the Port and Buyer pays loading and shipment.

FCO – Full Corporate Offer (Contract)

FOB – Freight on Board / Free on Board

G
Gallons - used for Domestic trades (not Metric Tons) - a unit of volume equivalent to 231 cubic inches or 0.3785 cubic meters, all measured at 60 degrees
Fahrenheit..

GGE - Gasoline Gallon Equivalent

Grade – any grade of the oil specified in the agreement.

H

I
ICPO – Irrevocable Corporate Purchase Offer

IDLC or IRDLC – Irrevocable Documentary Letter of Credit

IMFPA – Irrevocable Master Fee Payment Agreement

IPOP – Initial Proof of Product 

IR – Initial Readiness

ISP – International Standby Practice

J
J.A - 21 - Terms for Jet Aviation Fuel (Commercial Aviation Fuel)

J.A - 2 – Terms for Jet Aviation Fuel (International Commercial Aviation Fuel)

J.P 54 – Aviation Kerosene Colonial Grade Jet Fuel (International)

K
Kerosene - a mixture of hydrocarbons produced by distilling petroleum, that is used as a lamp oil or jet fuel.

KYC – Know Your Customer

L
LDC - Local Distribution Company

LDD – Late Delivery Discount

LDS - Low Sulpher Diesel (D2)

LGN – Liquefied Natural Gas (Methane & CH4)

LNG liquefied natural gas - super cooled natural gas that is maintained as a liquid at - 160′ Celsius; LNG occupies 1/640th of its original volume and is therefore easier to transport if pipelines cannot be used.

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 the quality of the product pumped into the Buyer’s designated vessel.

LOI - Letter of Indemnity

LPFO/D6 Virgin - Light Petroleum Fuel Oil (untouched) / Diesel Fuel Oil Used (used in the diesel engines in most freight trucks, trains, buses, boats, and farm and construction vehicles.

LPG - Liquefied Petroleum Gas - Propane, butane or propane-butane mixtures derived from crude oil refining or natural gas fractionation. For convenience of transportation, these gases are liquefied through pressurization.

M
MATB – Marine Authority to Board

Mandate - An agent acting on half of an undisclosed Principal. (Buyer or Seller)

MCF – one thousand cubic feet of natural gas

Metric Ton – unit of weight equal to one thousand (1000) kilograms and 7.57 Barrels shall be equal to one (1) metric Ton, measured at 60 degrees Fahrenheit.

MMCF - one million cubic feet of natural gas

MMCF/D - millions of cubic feet of gas per day

MBOE - one thousand barrels of oil equivalent

MMBOE – one million barrels of oil equivalent

MMCFE – one million cubic feet of natural gas equivalent

Methane (CH4) - the simplest hydrocarbon and the main component of natural gas; methane is also produced when organic matter decomposes.

MOU - Memorandum of Understanding

Month – a calendar month

MT 103 - Bank Wire Transfer Procedures

MT 760 – Bank Wire Transfer Procedures

MWD - measurement-while-drilling tool – technology that transmits information from down hole measuring devices to the surface while drilling is ongoing.

N
NCNDA - Non-Circumvention Non-Disclosure Agreement

NGLs - Natural Gas Liquids – liquids obtained during natural gas production and processing; they include ethane, propane, butane and condensate.

NGV - Natural Gas Vehicle

Nitrous Oxide (N20) – a very potent greenhouse gas which has a large number of natural sources and is a secondary product of the burning of organic material and fossil fuels.

NNPC/JVC - Nigeria National Petroleum Company/ Joint Venture Company - Used by companies like Mobil, Royal Dutch Shell, Elf, Chevron, Texaco, and Jurassic Fuel Trading, LLC, etc..

NOR – Notice of Readiness – to commence injection into Buyer’s tanks

O
Octane – a performance rating of gasoline; the higher the octane number, the greater the anti-knock quality of the gasoline.

Oil – crude oil specified in this agreement

P
Party - Seller or Buyer

PB – Performance Bond

Petroleum – a naturally occurring mixture composed predominantly of hydrocarbons in the gaseous, liquid or solid phase.

PEMEX - Petroleos Mexicanos S.A. de C.V. - Mexico’s state oil company engaged in exploration, production, transportation, refining, storage and sale of crude oil and derivatives.

PG - Performance Guarantee

Platt’s - Platt’s McGraw Hill - London is the organization internationally recognized and accepted who publish official market prices of petroleum products on a daily basis.

POA – Pump out Authority

POD - Proof of Documents

POF – Proof of Funds

POP – Proof of Product

Port Cargo – when a cargo is discharged in more than one Discharge Port or received by more than one receiver at the Discharge Port

PPOP – Partial Proof of Product

PVT - Pit Volume Totalizer - equipment used to measure the volume of drilling mud in the mud tanks/pits.

Q
Q & Q – Quantity and Quality

Qatar – Sovereign Country along Persians Gulf- Leader in Petroleum / Natural Gas Production.

Quarter - period of the three (3) consecutive months commencing on twelve (1st) April, or First (1st) May , or First (1st) June.

R
RFQ – Request for Quote

R & E – Contract Rollover and Extensions

Rotterdam – Rotterdam, Netherlands

RWA – Ready, Willing, and Financially able to Pay

S
SBLC – Standby Bank Letter of Credit

SCF - Standard Cubic Feet

SCO - Soft Corporate Offer

SGS – Certificate of Inspection

SPA – Sales Purchase Agreement

SPOT Price - First Market Price

STA – Leased Tank Storage Agreement

STASCO - Shell Western Supply & trading, Ltd. (Shell Trading Desk)

Sulphur – a yellow mineral extracted from petroleum for making fertilizers, pharmaceuticals and other products.

Sulphur dioxide (S02) – a poisonous gas formed by burning hydrogen sulphide.

Sweeten – remove hydrogen sulphide and carbon dioxide from sour gas to make it marketable

SWIFT - Society for Worldwide Interbank Financial Telecommunication - A worldwide messaging system (MT- Message Type) for internal bank applications for transferring money.

Synthetic crude oil – a mixture of hydrocarbons, similar to crude oil, derived by upgrading bitumen from oil sands

T
TCF – one trillion cubic feet of natural gas

TDLC – transferable Documentary Letter of Credit

TRANSEFT - Russian government owned pipeline company (monopoly)

Transshipment - the transfer of oil from a vessel into another vessel.

TSA – Tank Storage Lease Agreement

TSR – Tank Storage Receipt

TT – Wired Funds

TTO - Tank Take Over


U
ULDS – Ultra Low Sulphur Diesel

V
Virgin - Untouched

Vessel – the ship whether owned or chartered or otherwise obtained by seller and employed by seller to ship the oil to the discharge port.

W
WTI – West Texas Intermediate (Oil Price Index)