Traders transacting through this platform have undergone our rigorous and extensive vetting and background checks and are certified to be capable of transacting successfully. The platform directly engages in every aspect of the transaction process to ensure the smoothest experience in implementation of the sale and delivery of fuel.
BUYER ELIGIBILITY:
- A proven multi-year track record in oil & commodity trading.
- A proven ability to receive and transport the product upon delivery.
- Sufficient available capital, or credit line, to purchase the product.
- Banking at a reputable bank.
- Storage and Shipping Arrangement must be in place
- Holding import or trading licenses to receive or transport the product in/through/to any country or territory where this might be required.
- Not selling the product to any party residing in, liaised with, or transporting to a location in, a country or territory under trade embargo by the United States of America, European Union, Hong Kong S.A.R. or the United Nations.
SELLER ELIGIBILITY:
- Seller must be the Title Holder and must unconditionally provide proof of title holding/allocation
- Seller must submit their Corporate and Tax registration details
- Seller must submit its Transaction Terms beforehand.
- Seller must submit verified Technical Specification of the product(s) it intends to sell. Verification agency must be a neutral inspection agency of International repute
- Seller must have an official website detailing Corporate information and activities. Email addresses with public domain servers are not accepted.
- Seller must provide sufficient proof of successful past transaction(s) in the oil & gas sector
Trader Due Diligence:
In order to become a Qualified Oil & Gas Trader, the applicant needs to undergo a due diligence carried out by our internal compliance team on the buyer or seller (applicant) and his company. The financials of the companies, oil & gas trading track records and current ability to purchase, store, and transport fuel are thoroughly scrutinized.
The procedure to become a Registered Trader:
- The potential Oil & Gas Trader fills the Buyer KYC Template / Seller KYC Template and submits online to Global Oil & Gas Trading (Subcontracts India).
- Our compliance team will review the information submitted and might request for further information relating to the Buyer's / Seller's company details, financial status, trading history and product requirements.
- Upon a positive review of the application, the buyer/seller deposits one time Commitment Fee. Subsequently, one of our sourcing managers will contact the Buyer/ Seller directly to discuss purchase requirements, product availability and transaction procedures.
- Once all parameters are satisfactorily met, the company will be registered as a Qualified Buyer / Seller and will receive our regular product offers via email.
The below points are important:
- Only experienced Traders can apply to become a Qualified Traders on this platform. We do not accept applications from Brokers or Intermediaries.
- Only authorized directors or senior officers of the buying/ selling company can submit an application for registration. We do not accept applications by unauthorized persons.
- Every Oil & Gas Trader will have to meet our Prescribed Standard prior being able to trade on this platform.
Global Oil & Gas Trading Also Actively Assists Several Other Types of Oil and Gas Investments
Broadly speaking, we facilitate four main types of oil and gas investments:
1. Exploration
These companies or projects buy or lease land and invest money in drilling. If they strike oil, the investment can pay off 10 times over – sometimes much more if the company uses borrowed money (leverage) to finance operations. If not, they may lose nearly everything they invested in that particular project. Pure exploration companies are best suited for those with very high tolerance for investment risk. These plays are highly speculative.
2. Developing
These projects drill near proven reserves, hoping to unlock further value. These are somewhat less speculative, but there are never any guarantees that their efforts on any one plot of land will bear fruit.
3. Income
These projects involve the acquisition of plots of land, either through lease or purchase, over proven oil and gas reserves, and seek to create a steady stream of income over and above expenses. This is generally the safest way to get involved specifically in the drilling and extraction operations, and is more of an income play than a speculative play. The risk is that the oil or natural gas will run out faster than expected.
This investment is for those seeking a passive income stream, but who can take on more risk than those investing in other traditional income generators, like investment grade bonds and annuities.
4. Services and Support
These companies provide a nearly unlimited menu of supporting services to the oil and gas industry. Examples include transportation, shipping and logistics companies, pipeline companies, construction and rigging companies, drilling and refining hardware and equipment manufacturers, refiners, and many others.
Investing in these companies is similar to investing in any other company involved in B2B services, logistics, technology, and the like. Some of these investments don’t rely on increasing fuel prices to be profitable. For example, pipelines make money by charging a fee per barrel transported. They’ll make roughly the same amount regardless of whether fuel prices rise or fall, as long as demand remains consistent.
