Trading Definitions

Agreement:                       Shall mean the Purchase Contract of which these specific provisions agreed between
Buyer and Seller form the conditions of Sales and Purchase.

 

API:                                   Shall mean American Petroleum Institute.

 

ASTM:                               Shall mean American Society for Testing and Materials.

 

Barrel:                               Shall mean a volume of forty-two (42) US gallons corrected for temperature to (60)
degrees Fahrenheit.

 

Bill Of Lading:                    Shall mean the official document, issued at the Load Port after completion of the
loading operations, stating the ships’ loaded quantity, expressed in Cubic Meters [cub meters], in Metric Tons [MT] expressed as per the above definitions. This document has to be signed in original by the shipmaster and
made out in accordance with the instruction hereinafter specified in this Agreement.

 

Boil-Off:                             Shall mean LNG tankers are designed to carry natural gas in liquid form at a
temperature of – 163°C, close to the vaporization temperature. ... This natural evaporation, known as boil-off is unavoidable and has to be removed from the tanks in order to maintain the cargo tank pressure.

 

Cargo:                               shall mean any particular quantity of the oil loaded into vessel as set out in this
agreement includes Part Cargo.

 

CIF:                                   Shall mean COST INSURANCE AND FREIGHT (named port of destination): Seller must pay the costs and freight includes insurance to bring the goods to the port of destination.

 

Commodity:                       Shall mean and refers to as being the product.

 

Crude Oil:                         Shall mean unrefined petroleum.

 

Day:                                   Shall mean calendar day.

 

DES:                                  Shall mean a trade term requiring the seller to deliver goods to a buyer at an agreed
port of arrival.

 

DLC:                                  Shall mean a Documented Letter of Credit from a financial institution.

 

Dollars or USD:               Shall mean dollars of the United States of America.

 

FOB:                                  Shall mean indicates that the sale is considered complete at the seller's shipping
dock, and thus the buyer of the goods is responsible for freight costs and liability during transport.

 

Grade:                               Shall mean any grade of the oil specified in the agreement.

 

Lay Time:                          Shall have the meaning as that given to it in paragraph 13 of this agreement.

 

LNG:                                  Shall mean Liquid Natural Gas

 

Loading Port:                     Shall, in respect of a cargo, mean the port(s) nominated by Seller for loading of such
cargo in accordance with the agreement.

 

LOI:                                   Shall mean Letter of Intent to purchase goods or services.

 

Month:                               Shall mean a calendar month.

 

NNPC:                               Shall mean Nigerian National Petroleum Corporation.

 

Party:                                 Shall mean either Seller or Buyer.

 

Parties:                             Shall mean Seller and Buyer jointly.

 

Quarter:                             Shall mean a period of the three (3) consecutive months commencing on first (1st)
January, or first (1st) April or first (1st) July or first (1st) October, etc.

 

SBLC:                                Shall mean The Standby Letter of Credit (SBLC) is an irrevocable documentary
commitment, separate from the sales contract, issued by the bank to a third-party beneficiary and promising to pay on behalf of the originator. a specific sum of money against delivery of documents satisfying the terms and
conditions of the SBLC.

 

SPA:                                  Shall mean A sales and purchase agreement (SPA) is a legal contract that obligates a
buyer to buy and a seller to sell a product or service. SPAs are found in all types of businesses but are most often associated with real estate deals as a way of finalizing the interests of both parties before closing the deal.

 

TT                                      Shall mean a telegraphic transfer (TT) is an electronic method of transferring funds
utilized primarily for overseas wire transactions. ... Telegraphic Transfers are also known as Telex Transfers, abbreviated TT; TTs can also refer to other types of transfers.

 

Vessel:                              Shall mean the ship whether owned or chartered or otherwise obtained by Buyer and
employed by Buyer to receive the oil at the loading port.