Broker/Facilitator Guidelines for Oil & Gas Trade
Broker/Facilitator Guidelines for Oil & Gas Trade
### *1.Introduction -
As a broker/facilitator in oil and gas trades, your role is to securely and transparently connect buyers and sellers while complying with international regulations. This document outlines key duties and protocols.
### **2. Key Responsibilities**
#### **A. KYC & Due Diligence**
- Verify the legal/financial status of buyers/sellers (companies, governments, or individuals).
- Screen against international sanctions (e.g., OFAC).
#### **B. Transaction Transparency**
- Document contract terms (volume, price, delivery, payment).
- Use standard contracts (e.g., INCOTERMS).
- Independent quality/quantity inspection (e.g., SGS).
#### **C. Payment & Financial Risk**
- Secure payment methods (LC, Escrow, Bank Guarantee).
- Hedge against price fluctuations if needed.
#### **D. Legal Compliance**
- Ensure adherence to trade/energy laws (OPEC, IEA).
- Comply with tax/customs regulations.
#### **E. Logistics & Delivery**
- Coordinate transport (tankers, pipelines).
- Arrange marine insurance (Lloyd’s standards).
#### **F. Dispute Resolution**
- Include arbitration clauses (ICC/LCIA). ---
### **3. Operational Steps**
- **Step 1:** Sign NDAs.
- **Step 2:** Collect legal documents (company registration, export/import licenses).
- **Step 3:** Confirm payment method.
- **Step 4:** Pre-shipment inspection.
- **Step 5:** Monitor delivery & final payment.
### **4. Risk Management**
- Monitor political/economic risks.
- Have contingency plans for delays/force majeure.
### **5. Professional Ethics**
- No hidden commissions.
Maintain neutrality between parties.
📘 Facilitator’s Duties and Operating Guidelines in Oil & Gas Transactions
1. Duties & Responsibilities
• Establish effective communication between buyer and seller without taking ownership of product or funds.
• Collect, verify, and transmit key trading documents such as SCO, ICPO, POP, POF, SPA, etc.
• Ensure full transparency between parties from initial contact to contract signing.
• Coordinate the exchange of contracts and monitor compliance with agreed terms.
2. Professional Ethics & Integrity
• Never offer guarantees, commitments, or official representation on behalf of either party.
• Maintain complete neutrality throughout negotiation and execution of the deal.
• Protect confidential information with utmost discretion and data security.
• Receive commission only after a successful transaction and based on written agreement.
3. Operational Procedures
• Sign a broker/intermediary agreement (NCNDA/IMFPA) before introducing parties.
• Verify identity and legitimacy of all parties and documents before proceeding.
• Work closely with legal and financial advisors to assess contracts and instruments.
• Document every step of the process and maintain records of communications.
4. Prohibited Actions
• Do not sign the SPA or any binding agreement on behalf of either party.
• Do not request or handle advance payments without formal written approval.
• Do not provide misleading, exaggerated, or unverified information.
5. Conclusion
The facilitator plays a critical, professional, and trust-based role in oil trade. Honesty, clarity, and operational integrity are the keys to long-term success.
📒 Facilitator’s Duties and Operating Guidelines in Oil & Gas Transactions
6- Duties & Responsibilities
Establish effective communication between buyer and seller without taking ownership of product or funds.
Collect, verify, and transmit key trading documents such as SCO, ICPO, POP, POF, SPA, etc.
Ensure full transparency between parties from initial contact to contract signing.
Coordinate the exchange of contracts and monitor compliance with agreed terms.
7- Professional Ethics & Integrity
Never offer guarantees, commitments, or official representation on behalf of either party.
Maintain complete neutrality throughout negotiation and execution of the deal.
Protect confidential information with utmost discretion and data security.
Receive commission only after a successful transaction and based on written agreement.
8- Operational Procedures
Sign a broker/intermediary agreement (NCNDA/IMFPA) before introducing parties.
Verify identity and legitimacy of all parties and documents before proceeding.
Work closely with legal and financial advisors to assess contracts and instruments.
Document every step of the process and maintain records of communications.
Prohibited Actions
Do not sign the SPA or any binding agreement on behalf of either party.
Do not request or handle advance payments without formal written approval.
Do not provide misleading, exaggerated, or unverified information.
Conclusion
The facilitator plays a critical, professional, and trust-based role in oil trade. Honesty, clarity, and operational integrity are the keys to long-term success.
