Why this glossary exists
Fuel trading vocabulary was built for insiders. New buyers receive a 12-page contract referencing ICPOs, BCLs, dip tests, and SBLCs and feel pressured to sign before they have understood what those terms commit them to. This glossary is the document we wish every buyer had on their first call.
ICPO — Irrevocable Corporate Purchase Order
The buyer's signed and stamped statement that they intend to purchase a specified quantity of product, at a specified price, under a specified Incoterm. It is "irrevocable" only in the sense that the buyer commits to negotiate in good faith — it is not yet a contract. Real sellers will not lift a finger without an ICPO.
SPA — Sales and Purchase Agreement
The legally binding contract between buyer and seller, signed after the ICPO and FCO have been exchanged. The SPA sets out volume, specifications, price formula, delivery terms, payment instrument, inspection regime, and governing law. This is the document you negotiate carefully — once signed, breaches have real legal and financial consequences.
FCO — Full Corporate Offer
The seller's formal counter-document to the buyer's ICPO. It restates the seller's terms: product specification, available volume, price, payment terms, and any conditions. An FCO is an offer, not a contract; once accepted, it leads to the SPA.
NCNDA — Non-Circumvention Non-Disclosure Agreement
A standard agreement (often using the IMFPA — International Master Fee Protection Agreement — alongside it) that prevents either party from going around an introducing intermediary. Used legitimately, it protects brokers from being cut out. Used illegitimately, it shields fraudsters from due diligence.
BCL — Bank Comfort Letter
A letter from the buyer's bank stating that the buyer has the financial capacity to perform the contract. It is not a payment guarantee; it is a creditworthiness signal. Sellers request a BCL before issuing a Proof of Product to make sure they are not wasting time.
POP — Proof of Product
Documents from the seller showing that the product physically exists: a refinery ATB (authorisation to board), tank receipt, dip-test report, or current product passport. Be careful — fake POPs are the most common fraud vector in this industry.
SBLC — Standby Letter of Credit
A bank-issued payment instrument the buyer puts in place that the seller can draw on if the buyer fails to pay after delivery. Common in larger transactions where the seller needs cash certainty before loading.
DLC — Documentary Letter of Credit (also called L/C)
A bank instrument where the buyer's bank pays the seller's bank against presentation of conforming shipping documents. Used in standard international trade — the L/C eliminates the need for either party to trust the other directly.
CIF — Cost, Insurance, Freight
An Incoterm. Seller pays for the product, the freight, and the marine insurance to the destination port. Buyer takes risk once the cargo crosses the ship's rail at the loading port. CIF prices are higher because they include shipping.
FOB — Free on Board
An Incoterm. Seller's responsibility ends once the product is loaded onto the buyer's vessel at the loading port. The buyer arranges and pays for shipping and insurance from there.
TTO / TTT — Tank-to-Tank Transfer
A delivery method where product is transferred directly from the seller's storage tank to the buyer's storage tank at the same terminal. Commonly used in major hubs (Rotterdam, Houston, Fujairah) to avoid loading onto a vessel. Lower-risk than vessel transfers because the dip test happens before product moves.
Dip Test
A physical measurement of product quantity and quality inside a storage tank, performed by a licensed independent inspection company (SGS, Intertek, Bureau Veritas). The buyer sends an inspector to the loading terminal who literally lowers a measuring device ("dipping") into the tank, takes samples, and certifies that the product is real, on-spec, and in the volume claimed.
This is the moment of truth. MinePetro's policy is dip test before payment — no exceptions.
Q&Q — Quantity & Quality
The certified result of the dip test. The Q&Q report is what the buyer pays against. If the Q&Q does not match the SPA specification, the buyer can walk away or negotiate a price adjustment.
EN590
The European standard for automotive diesel fuel. EN590 specifies sulfur content (max 10 ppm), cetane number (min 51), density, and other parameters. When buyers say "EN590 diesel" they mean diesel meeting this exact European norm — not a generic "ULSD".
Jet A1
The international jet fuel standard used in commercial aviation outside North America. Tightly specified for flash point, freezing point, and additive content.
REACH
The EU regulation governing chemicals (Registration, Evaluation, Authorisation and Restriction of Chemicals). Importers of fuel into the EU must verify their counterparty's REACH compliance for the relevant substances.
Mandate / Title Holder / Refinery
A mandate is a contracted intermediary representing a seller. A title holder is the entity that legally owns the product in the tank. The refinery is where the product is produced. In legitimate transactions, the chain from refinery → title holder → mandate → buyer is short and verifiable. In scams, it is long, unverifiable, and contradictory.
Bookmark this glossary — and demand that any counterparty you talk to uses these terms consistently.
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