The Different Ways To Sell Crude Oil.
There are four different ways to sell crude they include:
1). Cost Insurance and Freight (CIF):
Here, the crude oil seller will handle everything from loading the vessel and sending the crude oil to wherever the buyer wants it delivered. They buy from the NNPC on FOB terms and ship to the crude oil buyer on CIF terms.
2). Freight on Board (FOB):
Here, the crude oil seller pays for the loading and clearance costs of the cargo, while the crude oil buyer pays the cost of marine freight transport, insurance, unloading, and transportation from the arrival port to the final destination. In this case, the crude oil buyer pays for the cargo before it sails the port.
3). Tanker Take Over (TTO):
Here, the crude oil buyer will take over the vessel, offload it at its destination,
and return it.
4). Tanker to Tanker (TTT):
Here, the crude oil buyer uses their own vessel, then the oil is transshipped when the transaction is fully settled.