Courses

Every crude cargo that leaves a deepwater FPSO is worth tens of millions of dollars, and its price, contract, ship, measurement and payment are decided in a chain of steps where any mistake is costly. In this intermediate course for commercial, finance and marketing staff in the oil sector, you follow Nzinga, commercial manager at Atlântico Sul Petróleos, a fictitious operator, and the team that sells the crude from the FPSO Horizonte Azul. Understand how crude and product prices are formed from the Brent, WTI and Dubai/Oman benchmarks and from quality and location differentials, and the role of price reporting agencies. Identify the essential clauses of a sales contract, formula pricing, FOB, CIF and DES terms and letters of credit. Plan liftings between partners, with overlift and underlift, nominations, laytime and demurrage. Describe shipping and cargo measurement and identify commercial risks, including sanctions and compliance, in a scenario with incomplete documentation. Aligned with the ICC Incoterms® 2020 and Chapter 17 of the API MPMS. It is not investment, trading or hedging advice. The course is delivered in Portuguese.

What you will learn

• Explain how the prices of crude oil and refined products are formed from benchmarks and differentials.
• Identify the essential clauses of a crude sales contract, including formula pricing and payment terms.
• Distinguish the FOB, CIF and DES delivery terms used in crude trading and their relationship with Incoterms® 2020.
• Plan liftings in a simple programme between partners, taking entitlements, overlift and underlift into account.
• Describe the shipping of the cargo, chartering and the measurement of the quantity loaded and discharged.
• Identify the commercial risks of a transaction, including sanctions and compliance, and the control measures.

Modules

1. Markets and price benchmarks53 min
2. Sales contracts59 min
3. Nominations and liftings58 min
4. Shipping and cargo measurement58 min
5. Commercial risks57 min

Who it is for

Commercial, finance and marketing staff in the oil sector