Who this page is for. Producers, NOCs, independents, traders, refiners and end users across crude, condensate, refined products, LPG and LNG that need funded flows with strict control of title, cash and risk. Not legal or tax advice. All mandates subject to KYC, sanctions, permits, collateral and documentation.
Structured Trade Finance for Oil and Gas Transactions
Oil and gas finance clears when documents, title and logistics are tight. If your tank warrants are fuzzy or your LC text is sloppy, banks stall. We fix structure, raise capacity and run ops so cargos lift and cash cycles cleanly.
Crude • Condensate • Fuel oil • Gasoil • Gasoline • Jet • Naphtha • Bitumen
LPG • LNG • NGLs • Feedstock and intermediates
FOB • CIF • DES • DAP • Pipeline tickets • Tank to tank
What we do end to end
| Workstream | Our role | Typical outputs |
|---|---|---|
| Structuring | Match instrument to cycle, counterparty and route | Term sheet, cash waterfall, borrowing base, security stack, hedge grid |
| Capital raising | Run processes with banks and funds | LC and UPAS capacity, SBLCs, prepayment, PXF, repo, receivables purchase |
| Collateral and control | Set CMAs at terminals and storage, lock documents of title | Tank warrants, warehouse receipts, LOIs, depot list, account controls |
| Risk transfer | Bind cargo and storage insurance, credit insurance, PRI where needed | Policies naming lenders as loss payee, confirmations and limits |
| Docs and ops | Paper that clears banks, inspectors and shipowners | LC text under UCP600 and ISBP, BLs, NOR, Q88 checks, assays and inspector reports |
| Sanctions and compliance | Hard screens and routing discipline | OFAC EU UK checks, AIS and hull vetting, dark activity alerts, end use statements |
Instruments we arrange
- Letters of Credit and UPAS. Sight or usance with confirmation where bank or country risk is high. UPAS pays supplier at sight and lets you settle at maturity.
- SBLCs and guarantees. Performance support, prepayment security and tax or duty support where required by terminals or customs.
- Prepayment and Pre Export Finance. Advance against offtake with CPs tied to lifting programs, inspector sign off and pipeline nominations.
- Borrowing base revolving facilities. Eligible receivables and in tank or in transit inventory with daily collateral reporting.
- Inventory monetization and repo. Title transfer at tank or bonded storage with buyback and clear exit windows.
- Tolling or processing finance. Fund crude into refineries and lift products under processing agreements.
- Receivables purchase and confirmations. Non recourse where buyer grade and insurance allow it.
Pricing and hedging discipline
- Formula price to Platts or Argus plus or minus differential and quality premiums or penalties.
- Hedge policy by book and cargo. Futures and swaps mapped to shipment windows and credit limits.
- FX controls on USD pairs and local taxes. Clear pass through rules to avoid basis risk.
Security package lenders sign off
- Assignment of proceeds and receivables with buyer notice and confirmations.
- Title over inventory via tank warrants, warehouse receipts and endorsed BLs.
- Collateral Management Agreement at terminal, inspector controls on in and out flows.
- Deposit Account Control Agreements over collections and escrow waterfalls.
- Cargo and storage insurance, war and strikes where relevant, lenders as loss payee.
- Step in rights, tight CPs, events of default and replacement cargo rules.
Where this helps most
- Lift crude with limited balance sheet then roll product sales against repo or borrowing base.
- Finance storage and blending at ARA or similar hubs with tank to tank moves under CMA.
- Bridge LNG cargoes under SPA with DES delivery and creditworthy offtakers.
- Support LPG distribution with confirmed LCs and receivables purchase from utilities and distributors.
- Replace expensive broker chains with direct bankable flows and clean documents.
How we run a mandate
| Phase | Weeks | Deliverables |
|---|---|---|
| Scoping | 1 to 2 | Trade map, instrument choice, lender list, CP checklist, sanction routing plan |
| Indicative terms | 1 to 3 | Capacity, pricing bands, tenor and hedge grid |
| Diligence | 2 to 4 | KYC and sanctions, terminal approvals, inspector scopes, insurance quotes |
| Docs and CPs | 3 to 6 | Facility agreements, LC text, CMAs, DACAs, repo terms, SPA support letters |
| Go live | Per cargo | Draws, nominations, lifting, sweep and reporting |
Lender pack checklist
- Audited financials and latest management accounts.
- Trade flows with Incoterms, routes, counterparties and credit grades.
- SPAs or offtake agreements. LC or SBLC text if applicable.
- Borrowing base and collateral schedules with eligibility rules.
- Terminal contracts, CMA draft, tank allocation, sample tank warrant.
- Inspector scope, Q88 checks, vessel vetting, P and I and COFR where relevant.
- Insurance quotes for cargo and storage, war and strikes, credit insurance if used.
- KYC and sanctions screen, AIS monitoring plan, end use and routing attestations.
- Board approvals and governance chart, legal opinions where required.
FAQs
Can we fund without tank warrants
Possible with receivables purchase from strong buyers and confirmed LCs. For most hubs lenders still want title control at tank or clean BLs and inspector oversight.
What does UPAS add in oil trades
Suppliers get paid at sight which wins allocations. You pay at maturity which protects working capital. The premium is usually worth the capacity and timing edge.
How strict is sanctions control
Non negotiable. We set screens, routing rules, AIS alerts and documents that keep banks and insurers comfortable. If a flow cannot clear, we will say no.
Need oil and gas trade finance that actually funds, lifts and settles without drama
Request a Proposal Book a ConsultationDisclaimers
- We advise and arrange financing. We are not providing legal or tax advice.
- Terms vary by commodity, counterparty, corridor, collateral and market conditions.
- All transactions are subject to diligence, sanctions compliance, insurance and final documentation.
