Vitol Solutions connects buyers and sellers across international oil and gas markets, supporting the procurement, marketing and movement of physical energy products.
Our approach combines product specifications, supply availability, logistics, transportation, documentation and commercial terms to help customers structure transactions suited to their requirements.
Our product offering can include:
| Product Category | Typical Products | Supply Format |
|---|---|---|
| Crude Oil | Light, Medium & Heavy Crude | Bulk / Pipeline / Vessel |
| Diesel & Gas Oil | EN590, ULSD, Gasoil | Bulk / Vessel / Terminal |
| Gasoline | Gasoline, Mogas, Motor Spirit | Bulk / Vessel / Terminal |
| Jet Fuel | Jet A-1 / Aviation Turbine Fuel | Bulk / Vessel / Terminal |
| Fuel Oil | HSFO / LSFO / Marine Fuel | Bulk / Vessel / Terminal |
| Naphtha | Light & Heavy Naphtha | Bulk / Vessel |
| Bitumen | Asphalt / Bitumen Grades | Bulk / Vessel / Truck |
| Base Oils | Group I, II & III | Bulk / Vessel / Terminal |
| LPG | Propane / Butane / LPG Mixes | Bulk / Vessel / Terminal |
| Marine Fuels | Marine Gas Oil / Fuel Oil | Barge / Vessel / Terminal |
Product availability, specifications, quantities and delivery locations are subject to individual transaction terms and market conditions.
Natural gas and LNG provide important sources of flexible and reliable energy for industrial customers, utilities and other energy users.
Our activities can include:
We focus on matching supply with customer requirements while considering delivery location, specification, volume, timing, transportation and contractual terms.
Our procurement process is designed to provide a structured path from the initial buyer requirement through commercial negotiation, contract execution, logistics and final delivery.
A typical transaction follows several stages.
The buyer provides the basic purchasing requirement, including:
For example:
Product: EN590 10 PPM Diesel
Quantity: 50,000 MT
Delivery: Rotterdam
Period: October 2026
Basis: CIF Rotterdam
Specification: Contractual EN590 specification
The more complete the initial requirement, the more efficiently the transaction can be evaluated.
Once a requirement is received, the proposed supply is evaluated against the buyer's specifications and delivery requirements.
This may include consideration of:
For physical energy transactions, product quality and documentary consistency are particularly important.
Following evaluation of the requirement and available supply, commercial terms can be discussed.
A commercial offer may specify:
Product:
Quantity:
Specification:
Price:
Pricing formula / benchmark:
Incoterms®:
Loading port:
Discharge port:
Delivery window:
Payment terms:
Inspection:
Documentation:
Validity of offer:
The final commercial terms are established through the contract between buyer and seller.
The Incoterms® 2020 rules define important responsibilities between buyer and seller concerning delivery, costs and transfer of risk. They do not replace the underlying sale contract.
For oil and gas transactions, the choice of Incoterms® should be made carefully because the physical movement of commodities involves ports, vessels, pipelines, terminals, storage facilities and other infrastructure.
| Incoterms® | Typical Use | Main Commercial Concept |
|---|---|---|
| EXW | Ex-terminal / ex-works transactions | Buyer generally takes responsibility from the named place |
| FCA | Terminal or multimodal delivery | Seller delivers to the buyer's nominated carrier at the named place |
| FOB | Seaborne oil cargoes | Seller delivers the cargo on board the buyer-nominated vessel |
| CFR | Seaborne imports | Seller arranges and pays freight to the named destination port |
| CIF | Seaborne imports | Seller arranges freight and insurance to the named destination port |
| DAP | Delivered inland/terminal cargoes | Seller delivers to the named destination, ready for unloading |
| DPU | Delivered and unloaded | Seller delivers and unloads at the named destination |
ICC classifies FOB, FAS, CFR and CIF as rules for sea and inland-waterway transport, while FCA, CPT, CIP, DAP, DPU and DDP can be used for any mode or combination of transport.
FOB is commonly associated with seaborne commodity transactions.
Under FOB, the seller delivers the goods on board the vessel at the named port of shipment. Under Incoterms® 2020, risk transfers when the goods are on board the vessel.
50,000 MT Diesel — FOB Rotterdam
The commercial structure could identify:
The buyer normally arranges the main ocean transportation after the FOB delivery point.
CIF can be appropriate for maritime commodity purchases where the seller is responsible for arranging freight and insurance to the named destination port.
Under CIF, the seller pays the freight to the named destination and obtains the required insurance, while risk transfers when the goods are loaded on board the vessel at the port of shipment. ICC notes that CIF requires minimum insurance cover unless the parties agree otherwise.
50,000 MT Jet A-1 — CIF Houston
The transaction would typically establish:
Loading: Named origin port
Destination: Houston
Quantity: 50,000 MT
Price: Agreed benchmark/formula plus applicable differential
Freight: Seller-arranged
Insurance: Seller-arranged under CIF requirements
Inspection: As contractually agreed
Documents: As specified in the sale contract
CFR is similar to CIF in that the seller contracts and pays for freight to the named destination port.
The important distinction is that CFR does not include the seller's obligation to procure insurance in the way CIF does.
Under both CFR and CIF, however, risk transfers when the goods are delivered on board the vessel at the port of shipment—not when they arrive at the destination.
This distinction between who pays transportation costs and when risk transfers is particularly important when negotiating physical oil transactions.
FCA can be useful for terminal-based or multimodal transactions.
The seller delivers the goods to the carrier or other person nominated by the buyer at the named place, with risk transferring at that delivery point. ICC specifically notes that FCA can be appropriate for containerized maritime shipments.
For example:
FCA — Named Oil Terminal, Rotterdam
The contract should clearly identify the exact terminal, delivery point and responsibilities of each party.
DAP can be used where the seller is responsible for arranging transportation to a named destination.
Under DAP, the seller delivers when the goods are placed at the buyer's disposal at the named destination, ready for unloading. Risk transfers at that point.
This can be useful where a customer wants a more delivered procurement solution rather than arranging the main transportation independently.
An Incoterms® rule should not be used by itself.
The named port, terminal, place or point is critical because it determines the delivery point and, depending on the rule, affects the allocation of risk and costs. ICC recommends being geographically specific when incorporating an Incoterms® rule into a contract.
Instead of:
CIF Rotterdam
a contract may need to identify the agreed destination more precisely where appropriate, such as a specific port or terminal, together with the other contractual details.
Likewise:
FOB Houston
should be supported by a clearly identified loading port and delivery point.
Oil products are frequently priced using an agreed benchmark or pricing formula rather than simply a fixed number.
A transaction may therefore contain:
Product + Specification + Quantity + Benchmark + Differential + Incoterms® + Delivery Location
For example, the contractual pricing mechanism might reference an agreed industry benchmark plus or minus a negotiated differential.
The precise benchmark, pricing period, quotation window, currency, unit of measure and adjustment mechanism should always be defined in the sale contract.
Physical oil transactions require clear agreement on product quality and quantity.
Depending on the transaction, the parties may specify:
The inspection company, testing methodology, inspection point and effect of the inspection certificate should be agreed contractually.
Once the commercial contract is concluded, the physical delivery process can involve multiple parties:
Seller → Terminal / Refinery → Loading → Vessel / Pipeline / Truck → Port → Discharge Terminal → Buyer
For maritime cargoes, this can require coordination between the seller, buyer, terminal operators, vessel owner or charterer, inspectors, agents, port authorities, banks and other service providers.
The objective is to ensure that the product arrives on specification, within the agreed delivery window and in accordance with the contractual documentation.
International oil trading requires appropriate contractual and regulatory controls.
Depending on the transaction and jurisdiction, documentation can include:
All parties should independently satisfy themselves regarding applicable sanctions, export controls, customs, anti-money-laundering, tax and other regulatory requirements.
Buyer submits product, quantity, specification and destination.
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Supply availability, product specification and logistics are evaluated.
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Price, benchmark, delivery, Incoterms® and payment terms are discussed.
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Counterparty, compliance and transaction documentation are reviewed.
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The parties execute the appropriate sale and purchase documentation.
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Loading, transportation, inspection and terminal arrangements are coordinated.
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Product is delivered according to the agreed contractual terms.
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Documents, invoicing and payment are completed in accordance with the contract.
At Vitol Solutions, our objective is to make physical energy procurement clearer, more structured and commercially focused.
From the initial product requirement to final delivery, every transaction requires attention to product quality, quantity, pricing, logistics, delivery terms, risk allocation, documentation and compliance.
Our Houston and Rotterdam focus provides a strategic perspective across two major energy and commodity centres, while our broader approach is designed to connect supply and demand across international markets.
Product. Price. Specification. Logistics. Incoterms®. Delivery.
One coordinated commercial process.
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC).
The information above is a general commercial explanation and is not legal or trade advice. Specific transactions should be reviewed against the applicable sale contract, jurisdiction, product requirements and current ICC Incoterms® rules.
