Custody Transfer Audit S

Custody Transfer Audit

Have you ever had a problem cargo and wished that you had appointed a Loss Control?

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Custody Transfer Audit


Have you ever had a problem cargo and wished that you had appointed a Loss Control?

Loss Control cannot be assigned to cover every single cargo movement and in some instances your exposure to a loss is deemed small or non-existent.

Have you ever wondered about the accuracy of data and reports presented by inspection companies when you are not protected by Loss Control?

Now there’s a solution, Oil Inspections is pleased to present a new service: Custody Transfer Audit (CTA)
For more than 30 years Oil Inspections has reviewed thousands of inspection company documents and can positively state numerous mistakes are made by the attending inspector and subsequent office processing.

  • A few current examples are:
  • Misreporting analysis results – Water reported as 0.3% and corrected to 0.03%
  • Entering a temperature into a meter API cell - temp was 75°F; API was 33
  • VEFs – incorrectly compiled
  • Incorrectly applying Nett deductions – NSV volume higher than GSV volume
  • S&W determined by In Line Sampler, but vessel free water deducted as well
  • Misreading strapping tables , volumes, critical zones
  • Incorrect closing temps and APIs on shore tanks
  • General typos

Examples found and corrected have literally saved our clients hundreds of thousands of dollars, but ONLY when they have been promptly identified.

The first example occurred twice on the same day for the same client in two separate locations, the corrections added $600,000 to delivered volume.

The "confirmed figures" had been issued to all parties by the inspection company before being sent to Oil Inspections for verification.

The second example had understated the outturn by 1,000 bbls of Crude. The terminal and inspectors had agreed figures and issued their report as confirmed.

Incorrectly compiled VEFs are very common, multi grade or part cargoes are not combined, non-applicable voyages are included.

Discharge VEFs, where applied, are commonly compiled from proprietary data systems or based on terminal bias, where the inspector makes no attempt to verify the accuracy or validity of any of the data.

The above are just a few examples of what we see on a daily basis.
With Oil Inspections in attendance as Loss Control our clients are confident that these and other errors are found and corrected, generally without them being aware they existed.

However , what happens if no one double checks the figures?

Operators are very busy and often do not have the time to analyze the shear volume of data and reported information.

They may realize there is a loss and make a few enquiries to the inspection company, but the chances are small of the inspectors finding and correcting their own mistake.

Additionally unexpected losses can occur if correct API procedures are not followed , such as:

  • No L/D performed , or performed incorrectly – incorrect limits used
  • Ship and shore tanks not gauged or gauged incorrectly
  • Inaccurate data recorded
  • In line sampler used – but did not perform within tolerance
  • Meters used but not proven correctly or at all
  • Non calibrated survey equipment used – inspectors did not use their equipment

Another common occurrence is for the inspectors to totally ignore or be unaware of specific Q&Q clauses in the sales contracts which you have specified in the nomination. We do not recall an inspector EVER telling us a roof is within 6” of the CZ or that a line displacement was out of your stated tolerance. These issues can easily turn an apparent loss into a gain if the terms of the contracts are properly addressed and applied, but what happens if the inspector does not tell you ?

There is generally no provision within an inspectors report to highlight such matters and so no way to draw your attention to them.

Oil Inspections offers a service , Custody Transfer Audit (CTA), where we will review jobs for you, almost in real time. Time is of the essence and mistakes can be more easily corrected before the trade book is closed on a job.

How would this work?

  • You send us the data as soon as possible, or instruct the inspector to send it to us.
  • We will review, identify any clear errors and also provide a list of follow up questions that may need to be further investigated to solve the issue.
  • If good cause is found for a more in depth investigation then OIL will deal directly with the inspectors.

What data would be needed?

  1. Your full nomination to the inspection company
  2. Relevant quality & quantity clauses as agreed with the other party
  3. Inspectors updates, COAs, provisional and/or final reports
  4. If this is a discharge then relevant load port documents would assist.

The key element is a review as close to real time as possible. Errors are more readily corrected before they are published to all parties.

Oil Inspections maintains an active archive of hundred’s of ship VEFs and details which can be used to compare with current details for accuracy. Also we have 30 years experience of attending many terminals across the US and Caribbean and we are aware of many of the specific terminal idiosyncrasies and practices which may not meet the guidelines of API methods; such practices often being ignored by inspectors if no Loss Control is present.

This service does not need to be used only when you experience a problem. OIL will review inspector’s reports for accuracy and content on any assignment. Periodic spot checks and audits of standard jobs can help prevent issues in the future before they may cost you revenue.

Prevention is always better than cure.

We recently saw a report for a loading where 8 shore tanks were used , but the sample receipt only showed 5 tanks. On the same job the inspection company’s sample receipt showed samples would only be retained for 45 days, when this was queried with the client the orders showed that samples must be kept for 90 days.

Both of these items could be a major concern if a quality issues arises at a later date.

What would this cost?

  • Minimum charge of $250 to review documentation and provide initial review
  • Hourly charge $150/hour – billed in 15 minute increments (during regular office hours)
  • Hourly charge $300/hour – billed in 15 minute increments (during out of office hours, weekends and holidays)
  • Site visit (terminal or inspection company office) $150/hour + subsistence and travel expenses as per regular assignment attendance ( miles - $0.75/mile, subsistence $48/day, other charges at cost)

So for a cost of less than less than 3 barrels of Crude you could recover thousands of dollars.

We hope you find this of interest and will feel there is now a service that can back you up even if no Loss Control was present on site.

If you have any questions or would like to meet and discuss this concept further we would be happy to do so.

Thank you for considering OIL INSPECTIONS USA INC. for all your Loss Control needs.

 

 

Bunker Surveys

Surveys can be performed to establish current bunker quantities or to reconcile consumptions.

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Bunker Surveys


Surveys can be performed to establish current bunker quantities or to reconcile consumptions.

 

Other Services

Other services include the assessment of vessel’s operational equipment with regard to load/discharge capabilities, safety and charter party obligations.

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Other Services


Other services include the assessment of vessel’s operational equipment with regard to load/discharge capabilities, safety and charter party obligations.  In the event of an untoward incident whether oil spill, collision between vessels and/or dock or personal injury our surveyors will immediately enact notification procedures so that client’s are not subject to delayed third party notice of claims.  All oil inspections superintendents are familiar with initiating such procedures. We have a number of employees who specialize in the upgrading of vessels from “dirty” to “clean” cargoes.  This entails their attending a vessel during the discharge of its oil and then remaining with it through the subsequent cleaning operation to ensure that it is in a suitable condition to load the next cargo.  This service has proved useful to both charterers and ship owners

 

 

Inspection Company Evaluations

Oil Inspections is often asked to recommend an inspection company in a particular port. We recognize that any one company will have strong and weak locations.

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Inspection Company Evaluations


Oil Inspections is often asked to recommend an inspection company in a particular port. We recognize that any one company will have strong and weak locations. Our staff are fully capable to evaluate the abilities of inspections companies to ensure that they are able to provide the best mutual service for that location.

 

 

Demurrage Claims

Oil Inspections can assist in reviewing demurrage claims, our expertise will often assist owners or charterers in verifying or denying claims.

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Demurrage Claims


Oil Inspections can assist in reviewing demurrage claims, our expertise will often assist owners or charterers in verifying or denying claims.

 

 

On Hire/Off Hire Surveys

Surveys can be performed to meet owners or charterers specific requirement.

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On Hire/Off Hire Surveys


Surveys can be performed to meet owners or charterers specific requirement. This may involve simply a Bunker Survey or may include condition surveys of vital pieces or equipment to provide the client with a realistic report of vessel’s ability to perform tasks.

 

 

Vessel Evaluations

Oil Inspections provides experienced staff to attend on the vessel at a location or on passage and perform in depth, due diligence surveys and evaluations.

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Vessel Evaluations


Oil Inspections provides experienced staff to attend on the vessel at a location or on passage and perform in depth, due diligence surveys and evaluations. Detailed reports provide the client with detailed capabilities of the vessel and also provides an analysis of HSE considerations.

 

 

Product Additive

A separate department of the company currently offers additive services at various locations in Europe assisting clients in maximizing quality aspects of cargo.

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Product Additive


A separate department of the company currently offers additive services at various locations in Europe assisting clients in maximizing quality aspects of cargo. Pipeline transfer reconciliation, full data collection , calculation and reconciliation of transferred volumes can be performed by our experienced staff.

 

 

Insurance and P and I club representation

Oil Inspections can act directly on behalf of owners P&I club or provide additional expert witnesses on site or after the event.

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Insurance and P and I club representation


Oil Inspections can act directly on behalf of owners P&I club or provide additional expert witnesses on site or after the event.

 

 

Contamination investigations

Contaminations do occur and one of the most difficult tasks is to establish what went wrong and who, if anyone, was at fault.

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Contamination investigations


Contaminations do occur and one of the most difficult tasks is to establish what went wrong and who, if anyone, was at fault. Our experienced staff are able to attend on site anywhere in the world and assist in investigations to determine not only what happened, but also to determine what can be done to correct the situation and reduce potential losses.

 

 

Loss investigations

We understand that losses occur and that for various reasons having Loss Control on site may not always be available or deemed to have been necessary.

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Loss investigations


We understand that losses occur and that for various reasons having Loss Control on site may not always be available or deemed to have been necessary. Therefore we are able to offer an “after the fact” service whereby all aspects of the event can be analysed and detailed investigations held with the parties attending such as terminals and inspection companies. Our vast experience of many locations worldwide can add insight into areas of concern that often result in amending figures to the benefit of our clients.

 

 

OBQ and ROB Surveys

OBQ and ROB surveys are an important part of any cargo or voyage reconciliation.

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OBQ and ROB Surveys


OBQ and ROB surveys are an important part of any cargo or voyage reconciliation. If performed and calculated correctly they will often provide additional sources of data for reconciling cargo volumes. Our staff pay strict attention to vessel suitability to receive cargo during OBQ surveys and also are very attentive during discharges in order to reduce potential ROB quantities and should volumes remain to ensure they are correctly identified and calculated.

 

 

Terminal Inventories

Our Staff are available to participate in Terminal Inventories

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Terminal Inventories


Our staff are available to participate in terminal inventories whether they are required, daily, monthly or at the start or completion of lease contracts.

Detailed reconciliations are tailored to meet the client’s requirements. Any issues are discussed locally and the client kept fully appraised of any circumstances that may affect their inventory.

 

 

Product Discharge Operations

Providing on site, full time attendance our experienced Superintendents monitor and assist in expediting all facets of the discharge operations.

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Product Discharge Operations at single or multiple ports

Providing on site, full time attendance our experienced Superintendents monitor and assist in expediting all facets of the discharge operations. With real time updates our clients are in touch with operations and any delays as they occur.

Supported by detailed email updates and a concise final report the client has all the relevant details at their finger tips to protect their commercial interests.

We can provide experienced insight into particular locations helping to prevent losses and delays.

Staff are conversant with industry standards such as ASTM, API & EI

 

Offshore ship to ship discharge operations

We provide on site attendance to facilitate efficient ship to ship transfers, whilst being attentive to all aspects of maintaining safe operations.

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Offshore ship to ship discharge operations

We provide on site attendance to facilitate efficient ship to ship transfers, whilst being attentive to all aspects of maintaining safe operations.
Our experienced staff liaise with clients in advance to discuss the most efficient method of discharging the vessels with the intention of reducing ROB risks. Consideration is given to the characteristics of different grades of cargo and best handling techniques.

 

Reporting

Clients are kept abreast of the progress of each operation from inception to conclusion.

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Reporting


Clients are kept abreast of the progress of each operation from inception to conclusion. A comprehensive report is prepared and can be individually tailored to client’s requirements. The report will normally include a detailed technical analysis, numerical reconciliation, and field data as necessary. The report will also include a detailed description of any untoward incidents and an explicit description of any corrective or follow up measures pursued to avert future difficulties. This is content for Product load operations at single or multiple ports

 

 

Draft Surveys

Experienced staff can perform this service using up to date calculation models and formula to ensure the most accurate result possible.

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Draft Surveys


Experienced staff can perform this service using up to date calculation models and formula to ensure the most accurate result possible. Verification of ships data and accurate determination of the variables and constant are key elements in producing a reliable result.

 

 

Ship’s Tanks Suitably

Ship’s tanks can be inspected for cleanliness and cargo suitability before use.

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Ship’s Tanks Suitably


Ship’s tanks can be inspected for cleanliness and cargo suitability before use. This may include associated lines and valve system, segregations and tank blending and heating capabilities.

 

 

Shore Tank Suitability

Shore tanks can be inspected for cleanliness and cargo suitability before lease.

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Shore Tank Suitability


Shore tanks can be inspected for cleanliness and cargo suitability before lease. This may include associated lines and valve system, tank mixing and heating capabilities. We will also review the tank calibration/strapping table to verify data of issue and other key data.

 

 

Load To Discharge Port Voyage Attendance

Oil Inspections can provide experienced staff to attend on board a vessel and sail from port to port to monitor any aspect of the vessel’s operation.

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Load To Discharge Port Voyage Attendance


Oil Inspections can provide experienced staff to attend on board a vessel and sail from port to port to monitor any aspect of the vessel’s operation. This may be required due to the vessel carrying a sensitive cargo, performing in voyage transfers or blending or preparing tanks for the next voyage.

 

 

Terminal Evaluations

Oil Inspections provides experienced staff to attend on location and perform in depth, due diligence surveys and evaluations.

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Terminal Evaluations


Oil Inspections provides experienced staff to attend on location and perform in depth, due diligence surveys and evaluations. Detailed reports provide the client with detailed capabilities of the location and also provides an analysis of HSE considerations.

 

 

Vessel owner representation

Oil Inspections can attend as Owners representative to assist and support the Master and crew at any location.

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Vessel owner representation


Oil Inspections can attend as Owners representative to assist and support the Master and crew at any location. This provides additional expert attendance to protect owners interests during any operation.

 

 

LPG load and discharge operations

LPG calculations required care and attention in order to avoid errors and cause paper losses.

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LPG load and discharge operations


LPG calculations required care and attention in order to avoid errors and cause paper losses. Our staff oversee the collection of the data and the correct calculations ensuring volumes are maximized.

 

 

Analysis consultations and investigations

Losses occur not just due to volumetric losses but also due to incorrect quality analysis.

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Analysis consultations and investigations


Losses occur not just due to volumetric losses but also due to incorrect quality analysis. Witnessing of sampling or re-sampling and analysis or re-analysis can often correct erroneous data.

 

 

Vessel Cleaning Upgrade Consultation

This is a highly specialized area of our expertise.

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Vessel Cleaning Upgrade Consultation


This is a highly specialized area of our expertise. Taking advantage of years of experience we can help charterers and operators maximize the cargo carrying abilities of their vessels often allowing short turn around changes from black to clean cargoes.

 

 

Blending Consultation

Oil Inspections can offer assistance with blending programs whether they are in tank or in line blends.

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Blending Consultation


Oil Inspections can offer assistance with blending programs whether they are in tank or in line blends. With on site attendance and careful monitoring the blend components can be maximized to produce the most cost effective results whilst minimizing quality risks.

 

Offshore Ship to Barge Discharge Operations

We provide on site attendance to facilitate efficient ship to barge transfers, whilst being attentive to all aspects of maintaining safe operations.

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Offshore Ship to Barge Discharge Operations

We provide on site attendance to facilitate efficient ship to barge transfers, whilst being attentive to all aspects of maintaining safe operations.

Our experienced staff liaise with clients in advance to discuss the most efficient method of discharging the vessels with the intention of reducing ROB risks. Consideration is given to the characteristics of different grades of cargo and best handling techniques.

 

Product Load Operations

Providing on site, full time attendance our experienced Superintendents monitor and assist in expediting all facets of the loading operations.

Learn More

Product Load Operations at single or multiple ports

Providing on site, full time attendance our experienced Superintendents monitor and assist in expediting all facets of the loading operations. With real time updates our clients are in touch with operations and any delays as they occur.

Supported by detailed email updates and a concise final report the client has all the relevant details at their finger tips to protect their commercial interests.

We can provide experienced insight into particular locations helping to prevent losses and delays.

All staff are conversant with industry standards such as ASTM, API & EI