INCOTERMS

AbdulkaderBazara · Post by **AbdulkaderBazara** » Thu Apr 13, 2006 1:00 am

Which type(s)of INCOTERMS maybe used in Oil and Gas sell when transport is made through pipelines? The particular case I have is delivery takes place at a named point by connecting the Seller's pipeline network to buyer's pipeline network. The named place is at a distant from the Oil and Gas depots of both Seller and Buyer.

asamaha · Post by **asamaha** » Fri Apr 14, 2006 1:00 am

There's no transport document. I think the Incoterm should be DDU (the depots at destination)
Regards
Antoine Samaha

AbdulkaderBazara · Post by **AbdulkaderBazara** » Mon Apr 17, 2006 1:00 am

Many Thanks Antoine, would like to hear some more comments as well.

regards
Abdulkader

BillSlowinski · Post by **BillSlowinski** » Fri Apr 21, 2006 1:00 am

Incoterms relate to the contract of sale so it is between the buyer and seller. It follows the responsibilites fo the parties involved for the sale. If the seller is responsible for the delivery of the oil or gas through the pipeline to the point of destination, I would agree to Delivered Duty Unpaid (Incoterms 2000). But I am not familiar with the oil and gas industry. It is possible the industry could be using Incoterms not found in or other than Incoterms 2000. I have seen this in another industry.

AbdulkaderBazara · Post by **AbdulkaderBazara** » Wed Apr 26, 2006 1:00 am

Bill,

Many thanks for your response. I believe you are right in stating that the industry may have its own trade terms. My search in the web revealed that in the sale of oil / gas contract which covers transport through pipelines, the function of transportation could be given to a third party (a Carrier) similar to any other transport industry and such transport contract maybe procured by either the buyer or seller. Their could also be transfer of the oil or gas from one carrier pipeline network to another carrier's pipeline network (sort of transhipment in the conventional transport system). To read a sample of transport service contract of such mode of transport click on the below URL

http://www.paalp.com/_filelib/FileCabin ... up._No.pdf

I am interested to hear more on this subject.

Best regards
Abdulkader