Procedures & business processes
Clear steps.Coordinated processes.
Every commodity transaction has its own requirements. The product, quantity, delivery location and the terms of our refinery and seller partners determine the applicable transaction procedure.
KRP Energy supports the coordination process as an authorised representative of the seller and ensures direct, structured communication between the parties involved.
A clearly defined role
Authorised.
Direct.
Reliable.
KRP Energy acts as a mandated representative for refineries and sellers, not as a producer or seller trading on its own account. Your point of contact is Jochen Kaminski.
Our transaction procedures define the individual steps and responsibilities involved in a business transaction. They complement agreed delivery terms such as FOB or CIF, which govern, in particular, the allocation of costs and the transfer of risk, as well as certain obligations of the contracting parties.
As each transaction has its own requirements, there is no universal procedure for all products and sellers. The specific process depends on the product, the requirements of our refinery and seller partners and the individually agreed commercial terms.
From enquiry to transaction
The general process.
The following five steps provide an overview of the typical process for initiating a business transaction. The binding transaction procedure, required documents and payment terms are determined by the respective seller and the contractual agreements.
Enquiry and company introduction
Send us your product enquiry, including the quantity, delivery location, desired delivery start date and, where applicable, monthly purchase volume. Briefly introduce your company and your role.
Agreeing the transaction procedure
Let us know your preferred procedure. We compare your requirements with the terms of our refinery and seller partners and clarify the basic delivery and transaction arrangements.
Agreeing the required documentation
Depending on the transaction, company information, evidence of authority to represent a party and further documents such as LOI, CIS, KYC or ICPO may be requested. Confidential documents should only be provided once a suitable transmission channel has been agreed.
Agreeing the commercial terms
Product specifications, quantities, prices, delivery terms, inspections, payment arrangements and, where applicable, security arrangements are agreed and documented between the relevant contracting parties.
Execution in accordance with the agreed procedure
The transaction is carried out in accordance with the agreed transaction procedure and contractual agreements. Where applicable, this includes document exchange, independent inspections, payment processing and delivery coordination.
Important notice:An enquiry constitutes neither a binding sales offer nor confirmation of product availability. Please do not send copies of identity documents, banking documents or other sensitive documents when first contacting us.
International transaction procedures
Different trading models.
Individually agreed processes.
Various delivery and transaction procedures are used in international petroleum and commodity trading. The choice depends on the product, delivery location, available infrastructure and the requirements and terms of the respective refinery or seller.
CIF – Cost, Insurance and Freight
Under CIF, the seller generally arranges and pays for sea transport and the required cargo insurance to the agreed port of destination.
Depending on the seller’s procedure, different models for financing and securing the transaction may be agreed. The seller may cover certain upfront commitments in full, or the buyer and seller may participate in separately agreed costs or security arrangements.
The specific allocation of costs, sequence of documents and payment process are set out in the respective transaction procedure and contractual agreements.
FOB-TTT – Tank to Tank
In Tank-to-Tank transactions, the agreed transfer of the product takes place between storage tanks, usually within a tank terminal or between the relevant tank facilities.
Depending on the procedure, execution includes coordination of tank capacity, evidence of the product, inspections and approvals.
FOB-TTV – Tank to Vessel
In Tank-to-Vessel transactions, the product is loaded from a storage tank onto a vessel provided or nominated by the buyer.
Loading requirements, required documents and inspections are agreed in accordance with the respective seller’s procedure.
FOB-TTO – Tank Take Over
In Tank-Take-Over transactions, the buyer assumes the rights to dispose of a product inventory held in an existing tank storage arrangement, subject to the agreed terms.
The takeover requires the relevant contractual, terminal and documentary approvals.
FOB-TTM – Table Top Meeting
In a Table-Top-Meeting procedure, authorised representatives of the buyer and seller meet in person at the agreed tank terminal or at the offices of the buyer’s shipping company or shipping agent.
The meeting generally requires Proof of Funds (POF) to be provided in advance as evidence of the buyer’s financial capacity.
During the meeting, key transaction documents are presented, reviewed or exchanged, and the next steps are agreed.
Depending on the agreed seller’s procedure, subsequent execution may take the form of Tank-to-Tank (TTT), Tank-to-Vessel (TTV) or Tank-Take-Over (TTO).
STS – Ship to Ship
In Ship-to-Ship transactions, the product is transferred directly between two vessels, for example at sea or within an approved port or anchorage area.
Execution is subject to the applicable maritime, safety and regulatory requirements, as well as the agreed inspection and handover terms.
Special FOB procedures for China
Separate FOB execution models may apply to certain transactions with Chinese buyers.
Where applicable, these take account of specific requirements concerning buyer documentation, vessel nomination, terminal approvals, inspections and payment security.
The applicable procedure is agreed on the basis of the specific enquiry and the seller’s requirements.
The procedures described are intended as general guidance. TTT, TTV, TTO, TTM and STS are not separate Incoterms and do not constitute internationally standardised transaction procedures.
CIF transactions may include supplementary financing, cost-sharing or security agreements. These must be expressly set out in the contract and distinguished from the basic obligations under CIF.
Only the transaction procedures confirmed by the respective seller and the terms agreed between the contracting parties are binding.
Before your enquiry
What you should know.
Can I specify a preferred procedure?
Yes. Describe your preferred approach together with the product, quantity and destination. Whether it is compatible with the seller’s terms will be clarified through further discussion.
What documents are needed for the first message?
Start with a brief introduction to your company, your role and your enquiry. Any further documentation required will be agreed afterwards. Do not send sensitive documents at this stage.
Does the same procedure apply to every product?
No. The approach may vary depending on the product, seller, delivery method, target market and agreed terms. What matters is the procedure agreed for the specific transaction.
Contact Jochen Kaminski
Let’s discuss
your requirements.
Tell us the product, quantity, your preferred procedure and the intended destination.
info@krpenergy.com
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