HM 81. Model general terms and conditions for cost, insurance and freight (CIF) and cost and freight (CFR) sale and purchase of crude oil
It is common practice for major international oil companies to produce their own in-house General Terms and Conditions (GTCs) for physical oil trading. These can vary considerably in their approach to key contract issues and cause significant difficulties when back-to-back contracts are involved between trading companies and other parties.
To address this, the EI has developed these model terms and conditions with the intent of providing a commonly known, commercially neutral set of contract terms which parties may use on a voluntary basis.
In this second edition the insurance deductible has been deleted from clause 9.3, so as to align the document with its sister documents:
- HM 80. Model general terms and conditions for free on board (FOB) sale and purchase of crude oil
- HM 82. Model general terms and conditions for free on board (FOB) sale and purchase of petroleum products
- HM 83. Model general terms and conditions for cost, insurance and freight (CIF), cost and freight (CFR) and delivery at place (DAP) sale and purchase of petroleum products
This guideline is available to download for free by registering/logging in to the EI publications website https://publishing.energyinst.org.
Organisations wishing to use these terms as part of their commercial contracts should apply to the Energy Institute for a licence which is available for a nominal fee.
ISBN: 978 0 85293 917 8 2nd edition Jul 2016
Hard copy EI member price: £90.00
Hard copy non-member price: £120.00
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