Industry standards that may vary from one transaction to another depending on factors like location, product type, and contractual agreements.

API Gravity The American Petroleum Institute (API) gravity measures the density of crude oil. Different transactions may involve crude oil with varying API gravity values, affecting its quality and pricing.

Sulfur Content The sulfur content in crude oil or refined products can vary significantly. Sulfur content affects the environmental impact and processing requirements, leading to different quality standards.

Product Specification Different transactions may require specific product specifications, such as gasoline, diesel, or aviation fuel with varying octane or cetane ratings, which can impact pricing and compliance.

Environmental Standards Regulations and environmental standards for emissions and pollutants can vary by region. Compliance with these standards may differ between transactions.

Licensing and Permits The need for licenses and permits can vary based on location and the type of operation, affecting the transaction’s regulatory compliance.

Companies involved in the exploration, production, refining, or transportation of oil and gas typically require permits and licenses from relevant government authorities.

Compliance with environmental permits and regulations especially for operations involving drilling, transportation, and storage.

Delivery Terms Delivery terms, such as FOB (Free on Board) or CIF (Cost, Insurance, Freight), can vary from one transaction to another, impacting responsibilities for transportation, insurance, and custom clearance.

Pricing Mechanisms Pricing mechanisms may differ, including fixed prices, indexed prices linked to benchmark crudes (e.g., Brent or WTI), or spot market prices.

Risk Allocation Risk allocation in contracts may vary, determining who bears responsibility for losses or damages during transportation and delivery.

Payment Terms Payment terms may differ, with some transactions involving letters of credit, bank guarantees, or open credit terms, affecting cash flow and financial risk.

Customs Duties Import and export duties may vary depending on the transaction’s origin and destination, affecting pricing and logistics.

Technical Standards Technical standards for equipment, materials, and safety practices may differ, influencing the selection and operation of equipment in the transaction.

Contractual Agreements The terms and conditions outlined in contractual agreements can vary significantly, including responsibilities for shipping, storage, and dispute resolution