Trade finance in oil and gas
The Trade Finance team in Trafigura is a key department within the Group. The ability to both raise liquidity from our financial partners and mitigate credit and performance exposure of our trading counterparties are key responsibilities for any successful company.
On a daily basis the Trade Finance team performs a number of tasks, such as: To fully master the role takes years of training as it requires an in-depth knowledge of every element of physical trading, the counterparties we trade with, and any regional specific issues regarding security and risk. It is essential to maintain a flow of communication with all key partners as deal specifics can change hour by hour, day by day.
USA - Houston Education: Started in Houston Treasury Interests: Check my blackberry to make sure any emails from Geneva, Mumbai, or Singapore have not come through during the night that needs to be addressed promptly. Time to get ready and head to the office, luckily I live about 10 minutes away so the commute is short and quick.
In the office, I sit next to the other eight members of our Houston Trade Finance team with decades of industry and Trafigura experience combined. The team has great chemistry and a trade finance in oil and gas of knowledge, not a day goes by where I do not learn something new or experience a brand new scenario that needs a unique solution. First things first, go through all my emails and check in with my operators to see if any prompt purchases or sales have come up that need to be handled immediately.
Looks like this Friday might actually be a quiet one as there is nothing new to report. An email just came through with the latest scheduled Pipeline cycle for Gas Oil so I will need to trade finance in oil and gas for a bank to trade finance in oil and gas it. I will have to forecast the exposure I will have on the cycle and choose a bank with apetite to manage the cycle. I ask my team what business they currently have and expect to have at certain banks to make sure we do not run into any issues.
We are also selling to several counterparties that I will require security prior to delivery of product, so I make sure to note those trades and reach out to their credit departments. Trade finance in oil and gas recently agreed terms on a new storage tank to stock products, based on the business strategy of trade finance in oil and gas product, and where we have been financing most of barrels purchased, I approached a specific bank with the storage agreement to discuss the financing.
Originally sent the documents last week and the contract is set to begin Monday, so I chased up the bank to see if the process is moving along. Looks like they needed legal counsel but have agreed to finance the new trade finance in oil and gas. Good news, need to alert my operator. Operations have submitted about 25 payments for tomorrow, will need to review each to ensure we have been invoiced correctly, make sure we cancel the letters of credits associated with the purchases, and provide finance approval so Treasury can remit the payments to our trade finance in oil and gas.
There are quite a few today so I need to approve them soon, Treasury will need time to set them up for Monday morning. Have a lunch meeting with our pipeline operator, it is a good idea to keep in constant contact with operators and traders in order to keep up to date with new business. Trade finance in oil and gas I know things are coming up on the horizon, I can approach banks and keep them up to date of potential situations.
Appears we have some new product business that will begin over the next two months so I am taking notes and getting an idea of trade finance in oil and gas the business will operate to see how we will finance it. Just received a message from our operator and it looks like we have a prompt trade that will load over the weekend.
We are purchasing from a counterparty that will require a letter of credit, loading a vessel that will ship to South America, and discharging in Ecuador. It is trade finance in oil and gas 1: If they cannot get a letter of credit issued today, the counterparty will likely refuse to load the product to our vessel so I have to make this work. A bank accepts to finance the deal. Need to draft a pledge agreement outlining the purchase and sale, draft a letter of credit for the bank to issue, and advise our operator to get the bills of lading consigned or endorsed correctly.
As the vessel will discharge in South America, the bills of lading will most likely be needed for customs purposes so I need to make sure that gets done correctly. If that cannot be done, all this work will go to waste and we will not be able to load product on our vessel over the weekend. They have a couple questions as to how we will report weekly inventory to them and where the product will be sourced from.
It is important to work with the banks to come to trade finance in oil and gas agreement that leaves both parties satisfied and comfortable. Just received the letter of credit for the product loading this weekend! It is important to keep an open and trade finance in oil and gas relationship with both the banks and counterparties when situations like this arise. The letters of credit that I have requested for sales to other counterparties due today are starting to come in.
It is important to review them line by line to ensure they are valid and cashable. If there are any errors or items missing, I will need to request the counterparty who issued to revise as soon as possible to ensure the LC is cashable prior to the risk date of the trade.
The day is finally winding down, I have received all my LCs for the day and everything was issued on time. Scan my emails and tasks flagged to make sure nothing has been missed. Singapore - Singapore Education: Joined the trade finance team 11 months ago Interests: Wake up and see the blinking red light of my Blackberry greeting me. Red flags for urgent, blue for later this afternoon. Shower and head into office. As the product traders shout out figures and major news headlines, predicting market movements and forecasts, I furiously scribble down notes.
I make my way down for a lunch appointment with one of our banks. I mentally remind myself how important it is to build and maintain good relationships with the banks, who we work closely with on a daily basis. During lunch, the bank pitches new products while we negotiate lower rates and keep them up to date with our current market strategy and storage expansion plans in our new key markets. One counterparty issues a Documentary LC 3 mio USD less, pricing off current month, and because the market is heavily contango I need to deploy my best negotiating skill in order to get a positive outcome.
Another bank wants to discuss discrepancies in the trade finance in oil and gas I presented, eventually I manage to convince them that the Trafigura position is correct and they come to an agreement. With the clock ticking, our vessel tendering NOR, possible demurrage trade finance in oil and gas running 50K a day, and an impatient client, I explain to my trader, manager, and operations team the financial risks and what actions have already been taken to protect our position.
Once the flurry of the day has slowed down, I finally have time to focus on reviewing ongoing trades, trade contracts and to lay out what has to be completed the next trading day.
Send out one last e-mail, reminding my bank on an upcoming due diligence trip to visit a floating storage next week. Started in Shanghai on the graduate programme Interests: Walking through the trading floor in the morning one can feel the buzz as everyone is preparing for the trading day ahead.
Liaise closely with traders and our operations team to get a clear understanding of our future and current trades. This includes aspects such as sale intentions and any shipment details that could affect how we finance the deal and what security we use.
Once I have a clear understanding of upcoming trades I will contact our financing bank to place deals. Clearly communicate trade details and negotiating rates.
Lunch with one of our financing banks. Discuss current trades and hear what the banks can offer us. As we work very closely with our banks on a daily basis, it is important to build and maintain good relationships. This may sometimes require negotiation with the counterparty regarding the wording of the security documents to make sure that Trafigura has financial security i.
Focus on cargo financing and external reporting for the two storage terminals I am responsible for. This includes marking product in tanks to current product prices and communicating the discharge and loading operations to our financing banks.
Once the tempo has slowed down I have time to focus on housekeeping which includes updating internal system, review and comment on new trade contracts and prepare for the next trading day. Notify me when I can apply for a Graduate position.
Overseeing analysis, monitoring, mitigation and awareness of the Company's financial risks. Making appropriate finance decisions, including overseeing cost effectiveness, diversity of financing sources, and minimum use of the Company's own liquidity.
Providing guidance to Finance Officers and Traders in difficult or unfamiliar situations. Carrying responsibility for trade finance in oil and gas maintenance of the regional bank lines as well as serving as the Company's main liaison with our Banking partners.
Overseeing that the Company is not exposed to risks associated with the OFAC regulations in force at any time. Time to draft a pledge agreement.
We support our clients in the constant flow of materials and goods around the world and are with them every step of the way. Recognised as market leaders in the commodities sector, we are ranked in the top tier of both the Chambers UK and Legal directories.
We have dedicated trade and commodities teams across our office network, including a substantial UK team, working on the full range of the commodity markets — hard and soft commodities, oil and energy, futures and derivatives, and the newer specialisations such as carbon trading.
Our end to end supply chain experience gives our advice a particular depth of understanding and this is underpinned by our legal knowledge across our contentious and non-contentious practices. We act for a wide range of producers, trading companies and banks offering pragmatic advice and steering them through the complex and diverse commercial challenges they face. We also advise on sovereign immunity issues, sanctions, trade finance in oil and gas investment treaties and WTO regulations.
Approaching trade finance on an integrated basis as part of a global commodities team, we offer sector specific financing advice to clients throughout the supply chain. The need for astute finance has never been greater, as the risks that go with international trade activity continue to increase. Sanctions regimes are evolving in a rapidly changing environment and many funders consider emerging markets to carry too much risk for their loan books today.
Our thorough understanding of the legal relationships between parties enables us to help clients avoid the problems that could potentially lead to a default. We advise on the full range of financing options such as structured trade and trade finance in oil and gas finance, general trade and trade finance including Letters of Credit and other payment mechanismsexport finance, supply chain financing, and receivables financing.
All our lawyers have a high level of awareness of the key commercial issues that pertain to commodity financing today, which combined with our industry knowledge, means that we can handle tough cross-border transactions with ease. Market leading contentious and non-contentious experience across the commodities supply chain We support our trade finance in oil and gas in the constant flow of materials and goods around the world and are with them trade finance in oil and gas step of the way.
Experience Our team Insight Get in touch. The team is very good - responsive, thorough and a pleasure to work with Client quote, Chambers UK Contacts View all Robert Parson Partner. Grace Asemota Legal Director. Geraldine Butac Senior Associate. Examples of our work: Role… Partners Lawyers Business Services. Offers clients considerable international expertise Chambers They are hugely professional, reassuringly flexible and able to handle matters both large and small Client quote, Chambers A very experienced all-round team Chambers