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Crude Oil and
Oil Products Trading Operations in
the Caspian Region |
NGPETROLEUM provides
oil trading operations
services for crude and oil
products trading companies in the
Caspian/Black Sea region, out
of/to the following ports:
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Azerbaijani ports
Baku, Sangachal and
Apsheron |
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Iranian ports Neka,
Anzali, Nowshahr and
Amirabad |
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Kazakh port Aktau
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Russian ports
Makhachkala, Astrakhan
and Nikolayevsk |
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Turkmenian ports
Turkmenbashi, Okarem and
Aladja |
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Georgian ports
Batumi, Poti, Supsa and
Kulevi |

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Business Trends
with Caspian Oil Suppliers |
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NGPETROLEUM operates in a
highly integrated
environment with most crude
oil suppliers in the Caspian
region. The company
maintains regular contact
with these suppliers to
perform detailed
monitoring of Caspian oil
cargoes transported through
Turkmenistan, Kazahstan,
Russia, Azerbaijan and
Georgia. Clients are
informed in a timely manner
regarding the current
situation, crude
oil and products
availability, and future plans
of the different oil producing
companies.
During the transportation of
a client’s oil, NGPETROLEUM
maintains daily
communication with all oil suppliers
in Turkmenistan, Kazakstan,
Russia and Azerbaijan.
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Operations conducted
through contact with
suppliers: |
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Holding
meetings and
seminars to
address the
availability of
the products;
participation in
the negotiations
of current
and future
projects, and
holding
discussions
concerning the lifting
schedules. |
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Monitoring
the cargo
accumulation
process at the
terminals;
verification of
the quantity
loaded during
the
cargo pumping
process
into the shore
tanks; checking
shore readiness
for loading onto
the client’s
nominated
vessels. |
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Checking of
the quantity and
quality of the
product loaded
onto the vessel
and its
conformity with
loading
instructions, as
provided by
the client. |
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Accuracy
verification
of the vessel
documents such
as Bills of
Lading;
oversight on the
issuance of
special letters
in case of any
mistakes made in
shipping
documents. |
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Observation
of the
measurement
process for crude oil and
products carried
out by the
terminals on
shore,
and verification of
its conformity
with ASTM and GOST standards. |
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Loss control
of the cargo
quantity and
quality
loaded/discharged
into/from the
terminals, and
assessment of
the reasons why
losses any were incurred;
calculation of
stocks quantity,
and oversight of
the calculation
of cargo
quantity in
accordance with
international
standards. |
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Ensuring timely
loading of the
cargo onto the
vessels and RTCs;
comparing B/L
and RWB data
issued by the
terminal with
the
inspector's
calculations. |
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Operational
Contact with Inspection
Companies |
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Whenever
crude oil and petroleum
products are traded,
transported, or distributed,
NGPETROLEUM is provided
with
minute-by-minute information
from the inspectors
regarding any situation
which may develop
and affect the movement. NG's operations team
maintains close
communication with the main
inspection companies in Azerbaijan, Kazakhsatn,
Turkmenistan, Georgia at every stage
of the cargo movement.
When
crude oil and products are
physically moved, whether it
is by shore tank, ship,
pipeline, or any combination
of these methods, NGPETROLEUM coordinates the
inspectors during the entire
process by providing the
following services:
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Representation
at the site of
operation |
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Monitoring
of terminal
and vessel
operations |
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Advice
on
maintenance
of cargo
integrity |
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Tank
and pipeline
inspection
/ verification |
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Loss
control
monitoring
and
investigation |
|
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Condition
inspection |
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Cleanliness
inspection |
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Sampling
and
measurement |
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Sealing |
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Other
related
activities |
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From
production platforms through
pipeline systems to tankers
and oil refineries, and from
terminals through inland
distribution systems,
inaccurate measurements
leave a company exposed to
the risk of large financial
losses. Risks may arise at
any point in the chain of
custody - at a point of
transfer, at loading or
discharge, as a result of
problems in the product's
production, storage,
or by the method of
transportation. NGPETROLEUM,
with the help of inspectors,
maintains awareness of these
transactions and assists clients
to manage these risks.
Control of the inspection procedures
related to sampling,
measurements, and testing
help to reduce losses
and avoid contamination,
which is critical to the
product's specifications and
their value.


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Demurrage Claims
Processing and
Verification |
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Full information and
analytical support
is provided to the
client’s demurrage
department regarding
the delivery of
cargo by railway and
sea routes.
Awareness of the
status and
whereabouts of
nominated cargo, its
quality and quantity
on a daily basis
across the whole
route from the
starting point
greatly minimizes
consequences and
possible impacts of
delays in cargo
deliveries to the
points of
destination, quality
deterioration and
reduction of
expected quantity.
NGPETROLEUM's
management
participates in
meetings with the
freight forwarders
and suppliers
regarding demurrage
reconciliations. All
the latest
information received
from all contractual
parties concerning
demurrage and copies
of claims are stored
in our extensive
database.
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Demurrage
claim
settlement
activities
facilitated
by NGPETROLEUM: |
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Provision
of
client
with all
the
necessary
shipping
documents
for the
relevant
vessels. |
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Investigation
and
reasoning
for late
delivery
of a
client’s
cargoes. |
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Control
on the
validity
of the
claims
submitted
by
freight
forwarders/suppliers. |
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Verification
of time
sheets
and
other
shipping
documents
submitted
by the
ship
agents
and
inspectors. |
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Calculation
and
monitoring
of
demurrage
claims
to/from
the
client,
freight
forwarders,
and
suppliers. |
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Control
of
timely
provision
and
settlement
of
different
types of
claims. |
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Timely
notification
to the
client
if any
of the
following
situations
occur:
any
delays
with
cargo
deliveries,
late
arrival
or departure
of rail
tank
cars and
client
vessels,
late
loading
commencement
or
completion,
change
in
weather
conditions
in the
Caspian
sea
ports
during
the
loading
of
client
vessels,
changes
in ports
schedules,
and low
loading
rates. |
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Capital
Raising
Services
–
covering
the
spectrum
of
products
from
senior
debt,
subordinated
debt and
equity,
to
structured
transactions
such as
production
payments
and
producer
loans. |
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Resource
Optimization
Products
–
including
off-stake
contracts
and risk
management
services. |
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Natural
Gas, LPG |
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NGPETROLEUM
assists clients in
gas/LPG issues by providing information
and analytical
support on
operations,
logistics, and
coordination for the
future export of
gas/LPG over Baku – Batumi corridor.
NGPETROLEUM
collects data about Azeri gas
production, gas
processing, NGL
consumption,
and transportation
costs.
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The
following
initiatives
have been
put in place to study NGL
opportunities
in
Azerbaijan: |
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Rail
Tariffs:
(Sangachal
–
Batumi/Russian
border;
Garadag
–
Batumi/Russian
border) |
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State
Tariff
regulation:
Domestic
vs
export
deliveries,
and
how the
deliveries
to
Georgia/Russia
are
treated |
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Rail
Traffic:
Current
traffic
(RTC per
day),
capacity
of the rail
system,
and expected
rail
tariff
increase
from
existing
projects
up to
2024 |
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Rail
Tank
Cars:
Current
amount/size
of RTCs
available
for
rental,
owner of
RTCs,
rental
price,
and
technical
shape of RTCs |
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Existing
Gas
Production
and
Production
Forecasts
(up to
2024):
Gas
production
(bcma)/gas
composition
(mol)
and the
following
gathering
points:
Dashgli
gas
plant,
Narimanov
gas
plant,
Garadag,
Hovsan;
gas
flaring
(bcma),
domestic
gas
specs |
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Infrastructure:
Current
capacity
and
expansion
plans
(preferably
with
break-down
by
owners/users): |
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LPG
transportation,
gas
processing,
NGLs
Fractionation,
LPG
storage,
underground
gas/LPG
storage |
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Current
gas
consumption
and
forecast
(up to
2024):
Bcma;
break-down
by
Consumers |
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LPG
consumption
and
forecast
(up to
2024):
kTa;
break-down
by
Consumers;
specific
delivery
obligations
imposed
by State |
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Domestic
prices &
Export
duties:
gas/LPG;
current
and
future
State
regulations |
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Petrochemical
industry:
Current
capacity/new
projects;
feedstock
requirement
(LPG/naphtha
kTa);
key
players
(Socar,
Azpetrol,
Azchimia,
others)
in terms
of
ownership
/ supply
/
consumption
/
marketing. |
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Claims
Verification |
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For rail contingency projects,
NGPETROLEUM provides
assistance to the client’s
demurrage team for the
calculation and verification of
demurrage claims to and from
the Receiving Party and the
freight forwarder. Informational and documentary
support is provided to the client. |

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Loss Control
Monitoring and Investigation |
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NGPETROLEUM verifies and
performs
in-depth analysis of data
and information received
from inspectors and freight
forwarders regarding RTCs
and Receiving Party vessels
at the point of shipment,
including the
corridor and port of
destination.
Long-term
experience and expert
knowledge in Caspian
logistics of NGPETROLEUM
operations staff helps oil
trading companies to
mitigate financial
consequences and losses
appeared as a result of
delays with expected
deliveries, quality
contamination, losses and
considerable reduction of
delivered cargo quantity,
demurrage disputes or any
other logistics issues. |

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Control and
Provision of Necessary Cargo
Documentation |
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NGPETROLEUM offers full
support relating to the
timely provision by freight
forwarders of all necessary
cargo documentation, their
accuracy and validity and,
if the documents are out of
order, coordinating actions
to resolve the problems, and
contact the relevant
authorities and prepare the required documentation /
communication in order to
resolve any issues. |

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Tracking of Cargo
Movements |
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A database with
detailed information
regarding cargo
movements of the
main Caspian oil
trading companies is
constantly updated on a
regular basis.
The following
information is
available from the
database: vessel's
names, cargo types
in port of shipment
and destination, B/L
dates, cargo
quantities
accumulated in
terminals of port of
shipment and
destination, and
cargo quantities
stored in RTCs. |

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Cargo
Assurance |
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The client’s cargo
assurance
departments gets
full informational
support from NGPETROLEUM
concerning the
inspection companies
and oil terminals
located in
Azerbaijan and other
Caspian region
countries.
NGPETROLEUM
provides assistance
for Cargo Assurance
Representatives
visiting the Caspian
region for audits of
leading inspection
companies such as SGS, Saybolt,
Intertek Caleb
Brett, and others. |

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Health,
Safety and the
Environment |
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Many efforts are
being undertaken to
minimize the
environmental impact
of oil companies'
operations in the
Caspian Region,
aiming to act
responsibly through
the complete life cycle
of cargo
transportation
process.
In order to ensure that there
are no accidents, harm to people,
pollution of
environment, and that
no one is subject to
unnecessary risk, NGPETROLEUM closely
monitors HSE
situation at the
terminals and
Caspian ports, on
the vessels loaded
with oil cargoes,
and on
the RTCs over the
whole transportation
route.
Real-time data
on specific events
such as accidents
and oil spills is
continuously stored in the
database. The necessary
data is collected to
enable monitoring of HSE performance by
the freight
forwarders,
suppliers,
inspection
companies, and
terminals.
NGPETROLEUM
immediately provides reports
to clients in the
case of an emergency
such as collision,
grounding, fire,
pollution or other
incident that may
have occurred during
cargo shipment, storage,
loading or
discharge.
NGPETROLEUM's
policies are
conducted to ensure that, in
the event of an
accident or incident
involving health,
safety, environment
or security, all
necessary actions
are taken to protect personnel, the
public, the environment,
and assets.
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NGPETROLEUM
provides
assistance
to regional
crisis
centers
regarding: |
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Developing,
reviewing
and
revising
facility/operation
specific
response
plans,
and
utilizing
a
comprehensive
planning
process
which
addresses
the
response
procedures
and
resources
needed
to
effectively
mitigate
all
reasonable
anticipated
emergencies. |
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Developing
and
maintaining
emergency
response
capabilities
that
properly
reflect
the
facility/operation's
risks
for all
reasonably
anticipated
emergencies.
These
capabilities
include
equipment
and
personnel
with
skills
that are
consistent
with
international
standards. |
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Conducting
and
participating
in
emergency
response
training
and
exercises
to
assure
the readiness
of
plans,
personnel
and
resources. |
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Responding
to and
managing
emergencies
affecting
their
facilities/operation,
utilizing
the
facility/operation
specific
Emergency
Response
Plan and
the
Incident
Management
System. |
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Guest
Relations Services |
|
On a regular basis,
NGPETROLEUM
provides guest
relations services for client
representatives and
partners who are
visiting Azerbaijan
and other countries
of the Caspian
region.
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The
following
services are
provided: |
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Provision
of
accommodation;
reservations
in the
hotels. |
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Introduction
tours
and
excursions
programs. |
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Meet
and
assist
at the
Airport. |
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Visa
support,
and
preparation
of
travel
packages
including
incentive
programs
and
group
tours. |
 |
Registration
and
travel
desks at
conventions. |
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Transportation,
including
trains,
flights,
coaches
and cars. |
 |
Arrangement
of
banquet
rooms
and
parties. |
 |
Restaurant
bookings. |
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Provision
of
guides
and
interpreters. |
Since 2005, NGPETROLEUM has
organized
business receptions
for business
development and
representative
managers, most of
the top managers of
leading oil trading
companies, managers
of freight
forwarding
companies,
and representatives
of all inspection
companies.
More than 200
representatives of
leading
international oil
companies from Canada,
USA, United
Kingdom, France,
Germany, Italy,
Belgium, Denmark,
Finland, Greece,
Netherlands, Norway,
Switzerland,
Portugal, Sweden,
Turkey, Romania,
Russia and more have attended
the annual
business events
organized by NGPETROLEUM.
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