Important Disclosure. For corporate sponsors and accredited investors. Not a public offer. Local restrictions may apply. Prepared by FG Capital Advisors, August 2025.
Oil & Gas Trade Finance: Diesel, Mazut, Jet Fuel, Gasoline, Crude Oil
FG Capital Advisors arranges trade finance for refined products and crude oil: diesel, mazut, jet fuel, gasoline, and crude oil. We structure issuer and confirmer routes, align LC/SBLC wording to contracts, and coordinate execution to issuance. Minimum facility is USD 10,000,000 (aggregate commitment). Our fees are transparent: a mandate/retainer to initiate work and a success fee payable at issuance or first draw.
Products & Structures
DLC at Sight / Confirmed DLC
Payment at sight on compliant documents. Confirmation is added where the beneficiary will not accept issuer or country risk.
UPAS LC (Usance Payable At Sight)
Exporter paid at sight; importer repays at 90–180 days. Useful for term matching on diesel, jet, or gasoline flows.
Prepayment with SBLC/APG
Advance-payment or performance undertakings to secure offtake. Strict title and inspection controls apply.
Insured LC / Risk Participation
Trade credit insurance or funded/unfunded participations to release limits and improve pricing.
Inventory & Repo Lines
Title/pledge over storage receipts and terminal undertakings with drawdowns against eligible stock.
Receivables Discounting
Financing or sale of receivables from rated buyers under notice and controlled collection.
Documentation & Controls
Documents
Contract, commercial invoice, full set clean bills of lading (or pipeline/terminal documents) , certificate of quantity and quality (Saybolt / SGS / Cotecna or agreed) , certificate of origin, insurance as required by Incoterms.
Controls
Title transfer wording, presentation period and place, terminal letters of undertaking, release controls, and assignment of proceeds where applicable.
Commercial LCs reference UCP 600. Standbys reference ISP98. Reimbursement may reference URR 725.
Indicative Economics
| Case | Face / Facility | Tenor | Key Terms | Applicant Cost (Illustrative) |
|---|---|---|---|---|
| Confirmed DLC | USD 20,000,000 | Pay at sight | Confirmation 0.6–1.0% p.a. prorated; advising & messaging per tariff | ~USD 120k–200k plus flat bank charges |
| UPAS LC | USD 15,000,000 | 150 days | Funding at benchmark + margin; optional confirmation/insurance | Usance interest for 150d + flats |
| Inventory / Repo | USD 25,000,000 | 364-day RCF | Advance rate vs eligible stock; daily mark-to-market | Benchmark + spread on drawn; facility/draw/legal fees |
Final pricing depends on issuer rating, country, route, tenor, collateral quality, and file completeness.
Corridors We Cover
Africa
West, East, and Southern Africa supply and import routes. Confirmation or insured LC used where issuer or country risk is constrained.
Latin America
Exports and coastal distribution programs for diesel and gasoline. Mix of issuer-only and confirmed routes based on counterparties.
Asia
Term cargoes into East and Southeast Asia. UPAS and insured LC paths are common for tenor and pricing balance.
Indicative Term Sheet — Oil & Gas Trade Finance
| Section | Key Terms |
|---|---|
| Borrower | Operating company or transaction SPV acceptable to lenders, post-KYC/AML. |
| Facility Type | DLC at sight (issuer-only or confirmed) , UPAS LC, insured LC, prepayment with SBLC/APG, inventory/repo, receivables discounting. |
| Facility Size | Minimum USD 10,000,000 (aggregate commitment) ; scalable subject to limits and collateral. |
| Tenor | Per shipment for LCs (sight or 90–180 days) ; inventory lines up to 364 days revolving. |
| Collateral & Control | Title documents, warehouse/terminal undertakings, assignment of LC proceeds, receivables with notice and control, SBLC/APG where prepayment is used, insurance endorsements naming lender. |
| Pricing | LC risk fees and/or benchmark (SOFR / EURIBOR) + margin. Bank tariffs for advising, amendments, messaging, legal, inspection, storage. |
| Advance & Eligibility | Advance vs eligible collateral; eligibility tests on documents, storage, and release mechanics; daily mark-to-market for inventory lines. |
| Covenants | Reporting (positions, movements, collections) , hedging policy if required, insurance maintenance, no junior liens, permitted disposals via controlled release. |
| Conditions Precedent | Executed finance and security documents, control agreements, terminal LOUs, inspections, insurance endorsements, legal opinions. |
| Events of Default | Non-payment, loss of collateral control, documentary defects not cured, sanctions/compliance issues, insolvency, covenant breaches. |
| FG Capital Advisors Fees | Mandate/Retainer: USD 40,000–60,000 (non-refundable). Success Fee: 3.0%–3.5% of funded/issued amounts (standard 3.25%) ; payable at signing/first draw per mandate. |
| Timeline | Complete file with aligned draft text and controls: days; complex multi-terminal or cross-border security: weeks. |
| Governing Law | To be agreed considering collateral location and lender preferences. |
The term sheet is indicative and subject to lender underwriting, limits, collateral verification, and documentation.
Execution Process
Request Oil & Gas Trade Finance
Share the product, corridor, shipment plan, and target timeline. Our team will source banks and confirmers, align documentation, and coordinate issuance.
Start Your Trade Finance RequestFAQs
Which rule set applies?
Commercial LCs use UCP 600; standbys use ISP98; reimbursement may reference URR 725 where a reimbursing bank is appointed.
Do you arrange prepayments?
Yes. We pair prepayment with SBLC/APG support, title and inspection controls, and clear release mechanics.
What is the minimum facility?
USD 10,000,000 aggregate commitment. Smaller sizes rarely clear lender economics and limit thresholds.
Do you fund directly?
No. We act as arranger and advisor, matching sponsors with suitable lenders and coordinating execution to issuance and first draw.
Disclaimer. Facilities are subject to underwriting, KYC/AML, country and counterparty limits, collateral eligibility, and documentation. Bank charges and third-party costs are separate from our fees.
