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A Guide to North Sea Shipping Operations
Consilience Energy Advisory Group Limited
Who Can Benefit from Reading the Guide?
The objective of this guide is to provide detailed procedures on Shipping Operations issues
for personnel who are new to the oil industry or to the job of shipping operations. It is also
useful for lawyers and finance personnel to understand the constraints with which operators have
to comply. It explains shipping documentation, managing the operational aspects of a sale and
purchase agreement and ensuring payment by the precise implementation of credit security
provisions.
Contents
The guide is separated into three sections:
- Shipping Documentation;
- Implementing and managing a sale and purchase contract; and,
- Credit Terms: Managing Documents to ensure payment.
Each section is written as a stand-alone document and can be purchased separately for
£100.
All three sections can be purchased for a total price of
£250.
If all three sections are
purchased, a case study of an operational problem will be included free of charge.
SECTION ONE: TABLE OF CONTENTS
- The preparation of Shipping Documentation:
- Vessel
- Laycan, Loading Range or Date Range
- Grade or Quality
- Quantity
- Parcels
- Co-Loads
- Destination
- ETA (Estimated Time of Arrival)
- Inspector
- Agent
- Consignor / Consignee
- Other
- Bills of Lading and Associated Documents
- Endorsing Documents
- The Importance of Accuracy
- Example of Nomination / Documentation
SECTION TWO: TABLE OF CONTENTS
- Contract Generation
- Term Contracts
- Spot Contracts
- Processing the Contract
- Agreeing Contract Amendments
- Deeming of Pricing Dates
- Contract Compliance
- Key Contract Clauses:
- Pricing and Payment including credit provisions
- Shipping Requirements and Regulations
- Ship Inspection
- Ship Vetting
- Vessel Nomination
- Vessel Acceptance
- Requests for Substitution
- Outturn Losses
- ROB / OBQ (Remains On Board / On Board Quantity)
- Cargo Inspection and Documents
- Laytime and Demurrage
- AN EXAMPLE OF A FORTIES CONTRACT
SECTION THREE: TABLE OF CONTENTS
- Credit Terms
- Irrevocable Documentary Letter of Credit (LC)
- Stand-By Letter of Credit (LC)
- Letters of Indemnity
- Parent Company Guarantee
- Open Credit with a Credit Limit
SECTION FOUR: CASE STUDY
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