ICBC Standard Bank ("ICBCS") is committed to Commodities and has identified the Energy Business as a major strategic focus for our clients.

WE OFFER

Energy Price Risk Management:

A range of products and structures to suit the differing needs of a global network.

Physical Energy Management:

A range of alternative financial and trading solutions in all key energy areas covering physical oil (dirty and clean) on land and on vessel with ability to transaction on: Crude Oil (IPE, Brent and Dubai, Condensates); Distillates (Gas oil, Jet Fuel, Gasoline, Kerosene); Fuel Oil

Structured Energy Products:

Tailored solutions to meet complex long and short term financing needs.

ENERGY PRICE RISK MANAGEMENT

  • Clients facing oil price risk can benefit from our risk management services, including: swaps, futures, and options across a full range of products and geographies
  • Risk management solutions can help reduce cash flow volatility and improve credit standing.

Typical clients include:

Type of Risk Protection
Consumers
  • Rising Oil Costs
    • Airlines
    • Shipping companies
    • Petrochemical companies
    • Utility Companies
Refineries
  • Changing differential between crude and products
Oil Producers
  • Falling oil prices
Oil/Fuel Storage Facility
  • Variable Prices

PHYSICAL ENERGY MANAGEMENT: REPO CONSIDERATIONS

Below are the typical benefits and requirements offered by ICBCS to large finance facility covering cargoes on sea and inventory tank.

Benefits of structures

  • Can be structured as a Trade or Finance deal
  • Can reduce cost of finance significantly
  • Does not use traditional credit lines
  • Can provide complete refinery/trading flexibility
  • Release value of crude/products in inventory/case release
  • Ability to blend and manage stocks efficiently
  • Allows build-up of stocks in contango returns

Operational continuity

  • Flexibility on timing of purchases and repurchases
  • Flexibility on grade purchased
  • Flexibility to blend at refinery or storage
  • Ability to move around tanks
  • Ability to blend intermediaries into crude oil or products
  • Minimise 3rd party involvement at site
  • Flexibility on hedging strategy
  • Retain all current operational departments

Requirements

  • No comingling of ownership
    • Single owner of all crude at refinery
  • Legal contract under UK law
  • Agreed hedging strategy may require margining
  • Bonded material/facility
  • Title transfer on receipt of payment

Talk to Us

  • Breadth of products includes:
    • futures, swaps (Asian, Bullet, Refinery Margin, Basket), Spreads (Crack, Time, Butterfly)
    • full range of options, including Asians, Europeans and Exchange Look-A-Likes
    • physical energy products - Repos: Financing, Tripartite, Option structures
  • ICBC’s strong banking and global franchise
  • ICBC Standard Bank's commitment to commodities over the long term
  • Structured team capable of producing tailored and finance-linked solutions for our clients
  • Physical oil experience
  • Standard Bank’s uninterrupted presence in commodities since 1994 and in the Energy Sector since 1996

Contact Us

EnergyDesk@ICBCStandard.com

+44 203 145 6860

Interacting Throughout the Value Chain

Seamless Solutions from Crude Oil to Product Sale

Energy Price Risk Management

  1. Production
    Production
    • ICBC hedges forward production
  2. Crude Transportation
    Crude Transportation
  3. Crude In-Tank
    Crude In-Tank
  4. Refining
    Refining
    • ICBC hedges refinery margins
  5. Refined Product In-Tank
    Refined Product In-Tank
  6. Refined Product In Transportation
    Refined Product In Transportation
  7. Consumption
    Consumption
    • ICBC hedges consumer fuel price

Physical Energy Solutions

  1. Feedstock Repurchase
    • ICBC Standard Bank buys crude and re-sells at future date
    • No LC required
    • Clean legal title must pass
    • ICBC Standard Bank responsible for insurance
  2. In-Tank Crude Purchase
    • ICBCS Standard Bank buys crude on receipt into tanks
    • Client buys back crude on just-in-time basis as per refinery slate
  3. Client Owns Oil During Processing
  4. In-Tank Products Purchase
    • ICBC Standard Bank buys product as it exits the refining process
    • Clients buys back product as per sales schedule
    • Product exchange
  5. Finance Of Export Cargoes To Final Destination
    • Asset Backed Lending
    • Factoring (ICBC)