Introduction to How to Verify Authentic Offers in Oil and Gas (Global Guide)
The oil and gas business can change your life in one transaction – for better or for worse.
Because deal values are high and the industry is complex, it attracts both serious professionals and a huge number of scammers, time‑wasters, and people who simply don’t understand how real transactions work. If you’re new – or even if you have some experience – you’ve likely already seen “too good to be true” offers in your inbox, WhatsApp, or LinkedIn.
Learning how to verify authentic offers in oil and gas is not optional. It’s a survival skill.
This long‑form guide on oilgassafeguide.com is written to help you:
Avoid losing money, data, and reputation
Quickly separate serious counterparties from fakes
Understand the documents, structures, and checks used by real operators
Build a repeatable due‑diligence process you can use globally
This article is for educational purposes only and is not legal, tax, or financial advice. For any real transaction, consult qualified lawyers, compliance advisors, and your bank. What you’ll get here is a practical, experience‑based framework so you can ask better questions and spot danger early.
A visual representation of global energy flows across the oil and gas supply network.
Before you can master how to verify authentic offers in oil and gas, you need to understand what kind of “offer” you’re actually looking at.
If you need a refresher on key trading terms, check our complete Oil and Gas Terminology Guide, which explains Incoterms, contract language, and product specifications in detail.
A real oil loading terminal illustrating how legitimate physical crude transactions work.
In global oil and gas, an “offer” can mean very different things:
1.1 Common Types of Offers
Crude Oil or Refined Product Supply Offers
Examples:
2M barrels/month of Brent crude, FOB Bonny
EN590 10 ppm, CIF Rotterdam, 50,000 MT x 12 months
Participants: national oil companies (NOCs), refineries, international and local trading houses, physical traders, and sometimes self‑described “agents” or “mandates.”
Upstream Participation and Farm‑In Offers
Example:
Farm‑in to a 10% working interest in an offshore block in Nigeria, Brazil, or the North Sea.
These deals involve exploration licenses, production sharing contracts (PSC), and joint operating agreements (JOA).
“We can arrange $200M financing for your gas field.”
“We have investors for your modular refinery or LPG plant.”
Service & EPC (Engineering, Procurement, Construction) Offers
Examples:
Full EPC for a mini‑refinery
Drilling services, seismic surveys, or pipeline construction
EPCF (Engineering, Procurement, Construction and Financing) structures
Each category has its own verification needs, but the principles of checking authenticity are the same.
2. Why Oil and Gas Attracts So Many Fake Offers
To really understand how to verify authentic offers in oil and gas, it helps to know why fake offers are so common.
Visual indicators of typical fraud patterns common in fake oil and gas offers.
2.1 Structural Reasons
High Deal Values
Even a small cargo is worth tens of millions of dollars. That size of opportunity attracts everyone – from sophisticated fraudsters to hopeful amateurs.
Complex and Opaque Supply Chains
A single deal might involve:
Producers
NOCs
Refineries
Traders
Charterers
Inspectors
Banks
This complexity makes it easy for someone to insert themselves and claim a role: “facilitator,” “allocation holder,” “authorized agent,” and so on.
Cross‑Border, Multi‑Jurisdiction Deals
Language barriers, different legal systems, and unfamiliar business cultures all make verification harder. Many registries are not easily searchable if you don’t know the local system or language.
Sanctions and Geopolitics
Countries like Iran, Russia (depending on product/route), Venezuela, and others face restrictive sanctions. This pushes some trades into the shadows and opens room for forged documentation and fake “back door” deals.
Information Asymmetry
Serious operators usually keep a low profile. They are busy executing real deals, not blasting offers in WhatsApp groups. Scammers, on the other hand, are noisy and visible.
2.2 Common Motivations Behind Fake Offers
Upfront Fee Scams
Demands for “verification fees,” “allocation activation fees,” “tank farm reservation fees,” or “registration charges” before anything real is shown.
Identity Theft & Data Harvesting
Scammers request passports, company documents, and bank data “for KYC,” then use them to impersonate you elsewhere.
Commission Fishing
People who don’t have a real buyer or seller but want to sit in the middle of the chain, hoping a deal magically closes so they can claim commission.
Reputational Leverage
Using your company name, LOI, or ICPO to appear legitimate when approaching other parties.
Understanding this context makes it easier to stay disciplined in your approach to how to verify authentic offers in oil and gas.
For a deeper look at how fraud schemes operate across the wider energy sector, read Avoiding Fraud in the Energy Industry, which expands on the patterns behind deceptive offers.
3. Core Principles: The Four Pillars of Verification
The foundation of every legitimate oil transaction: transparent verification.
Think of verification as resting on four pillars:
People – Who are you really dealing with?
Company – Is the company real, registered, and active in this business?
Commodity – Does the product or asset exist, and can they control it?
Money – Are the financial instruments, terms, and payment pathways real and compliant?
If even one pillar fails, the offer is compromised.
We’ll build your verification process around these pillars.
These pillars also align with broader market dynamics explained in Understanding the Oil and Gas Market Basics, which helps you see how global forces influence real and fake offers.
4. Step-by-Step: How to Verify Authentic Offers in Oil and Gas
This is your practical, tactical section – a process you can follow each time an offer appears.
Step 1: Slow Down and Define the Offer Clearly
Many problems begin because the offer itself is vague or confused.
Ask yourself:
What exactly is being offered?
(Crude, refined products, equity in a field, storage, financing, EPC?)
What quantity and frequency?
(Spot cargo or long‑term contract? One‑off investment or multi‑tranche?)
Under which Incoterms?
(FOB, CIF, CFR, DAP, etc.)
At which location?
(Loading port, discharge port, tank farm, field, refinery, pipeline entry/exit?)
What is the pricing formula?
(e.g., Dated Brent minus X, Platts FOB MED plus Y, Argus index, etc.)
What are the payment terms?
(LC at sight, LC usance, SBLC, TT after discharge, escrow, etc.)
Who is the legal seller on the contract? Who is the legal buyer?
If the other side can’t give you clear answers in writing, there is nothing to verify yet. You’re dealing with noise, not a real offer.
Step 2: Verify the Company
This is non‑negotiable if you are serious about how to verify authentic offers in oil and gas.
4.2.1 Basic Corporate Check
Request:
Certificate of incorporation or equivalent
Company registration number
Registered office address
Then independently verify using official registries where possible:
Other countries – Government corporate registries, chambers of commerce, or trusted local agents/lawyers
Check:
Date of Incorporation – a company created a few weeks ago claiming long‑term allocations directly from major NOCs or refineries is a big red flag.
Stated Business Activity – do they list trading, oil & gas, energy, logistics, or similar? If the official registration says they are an IT firm or a restaurant but now they claim to trade crude oil, you need to be very cautious.
4.2.2 Address and Contact Details
Use Google Maps / Street View to see if the address is:
A real office building
A mailbox in a co‑working space
A residential apartment
Test their phone numbers:
Do they have a landline, or only mobile / WhatsApp?
Call the main office number listed on the website, not just the mobile the broker gives you.
Check the email domain:
Serious companies almost always use corporate domains, not free services like Gmail or Yahoo.
Use a WHOIS lookup to see when the domain was registered. A domain created last month for a “20‑year global trader” is suspicious.
4.2.3 Online Presence and Reputation
Website – is it professionally done, coherent, and consistent with their claimed activity? Are there real names and contact details?
LinkedIn – do they have a company page? Are there real employees, with career histories that make sense?
Search engines – search:
[Company name] + oil trading
[Company name] + scam
[Company name] + fraud
You might find court records, news articles, or industry references that give you important context.
If a company fails basic verification, stop there. Don’t move on to contracts, bank instruments, or document sharing.
Step 3: Verify the People Involved
Even if the company is real, the person in front of you might not actually represent it.
If you call the switchboard or main number on the website, can you be transferred to this person?
Does their LinkedIn employment history line up with their claims?
4.3.2 Are They Authorized?
For a major contract, you need to know:
Who can sign on behalf of the company?
Is this person a decision‑maker, or just a broker bringing the opportunity?
You can ask politely:
“For our compliance file, could you confirm your level of signing authority, and share the name and title of the authorized signatory for contracts of this type and size?”
If they claim to be a “mandate,” “agent,” or “allocation holder,” ask for:
A scanned copy of their mandate letter or agency agreement
A way to independently verify this with the principal (using contact details you find yourself, not the ones they provide)
Step 4: Sanctions, Compliance and Licensing
Global oil and gas transactions are heavily regulated. Any authentic offer must be legally and ethically workable.
4.4.1 Sanctions Screening
You or your compliance partner should check:
All counterparties (companies and key individuals)
If anything or anyone is listed, or if the deal structure is clearly trying to bypass sanctions (e.g., strange routes, requests for no documentation), walk away and get professional legal advice.
4.4.2 Industry Licenses and Regulatory Authorizations
Depending on the jurisdiction, you may need to verify:
Trading licenses for oil and gas
Import/export permits
Upstream licenses or concessions (for field deals)
NOC approvals for allocation holders or lifting rights
If someone claims to have direct allocation from a major NOC or supermajor, they should be able to show evidence that can be verified directly with that institution through contacts or channels you source independently.
Step 5: Verify the Commodity and Supply Source
This is core to how to verify authentic offers in oil and gas: does the product really exist, and does the seller truly control it?
4.5.1 Basic Questions to Ask
For crude oil or refined products:
Origin – which country, which field, which refinery, or which terminal?
Specifications – API gravity, sulfur, density, standard (e.g., EN590, Jet A1 spec, RON, etc.)
Quantity and Schedule – monthly volumes, contract duration, laycans.
Loading / Delivery Point – port name, terminal, tank farm, or pipeline point.
Ask the seller:
“Can you walk me through the logistics chain step by step – from the product’s origin to our delivery point, including all pipelines, tanks, vessels, and key service providers?”
Listen closely. Real sellers can describe this clearly. Brokers and scammers usually stay vague.
4.5.2 The Reality of POP (Proof of Product)
“POP” is one of the most abused concepts in online oil and gas trading circles.
Understand this clearly:
No serious seller sends full sets of sensitive POP documents to random new contacts.
Many POPs you see flying around are:
Old documents reused
Photoshopped
Completely fabricated
Documents sometimes presented as “POP” include:
Past Bills of Lading (BLs)
Old SGS or other inspection reports
Storage receipts
Tank receipts
These by themselves do not prove current or future supply to you.
Real proof of product is:
The seller’s ability to perform under a properly structured contract and bank‑to‑bank process.
The willingness to subject the product to independent inspection (SGS, Bureau Veritas, Intertek, etc.) at real facilities.
Never pay any “POP fee” or “document verification fee.” That is a classic scam move.
Step 6: Verify Logistics, Vessels, and Ports
For physical cargoes, logistics checks are one of the most useful tools in how to verify authentic offers in oil and gas.
Understanding logistics, vessel movement, and port verification in oil transactions.
Pricing formula and reference (e.g., Platts, Argus, Dated Brent)
Payment method and payment timeline
Quality and quantity determination methods and inspector
Allocation of costs (inspection, freight, insurance, port charges, etc.)
Warranties and representations from each party
Force majeure, termination, and default clauses
Dispute resolution and arbitration (e.g., ICC, LCIA, LMAA)
Governing law and jurisdiction (e.g., English law, New York law)
If essential elements are missing or unclear, insist on clarification before proceeding.
4.8.2 Red‑Flag Clauses
Be careful with:
Upfront non‑refundable fees payable to the seller or their “contact” without clear, verifiable service or deliverables.
Clauses imposing heavy penalties on you (the buyer or investor) for any delay, while the seller has weak or no performance obligations.
Vague language such as:
“As per seller’s procedure only” without alignment with international norms
“Buyer accepts all risk of non‑delivery” disguised in legal jargon
“No inspection allowed” or “No third‑party inspectors”
Always have contracts of real value reviewed by independent legal counsel familiar with oil and gas or commodity trading in the relevant jurisdiction.
Step 9: Use Escalating Commitment and Test Transactions
A powerful principle in how to verify authentic offers in oil and gas is to start small and grow.
If everything passes initial checks but you still want proof:
Negotiate a smaller trial cargo or a limited scope of services.
Use tighter payment conditions for the first shipments (for example, more secure documentation or stronger performance guarantees).
Include a clear off‑ramp in the contract if performance is poor or terms are breached.
Real operators might accept a reasonable trial structure if they see you are serious and bankable. Scammers, who aim for a quick score, often push hard for:
Very long‑term contracts
Very large volumes from the start
Fast, unconditional commitments
Step 10: Ongoing Monitoring and Relationship Management
Verification doesn’t end once you sign the first contract.
After you start working together:
Track:
Delivery performance (on time, in spec, correct quantity)
Changes in company ownership or management
Any new sanctions or regulatory issues
Market talk and reputation about your counterparty
Increase face‑to‑face contact where practical:
Visits to offices
Attendance at industry events
Visits to terminals, refineries, or fields (for larger, longer‑term relationships)
Long‑term trust is built by consistent performance, not promises or fancy PDFs.
5. Key Documents You’ll See – and How to Check Them
To deepen your understanding of how to verify authentic offers in oil and gas, let’s look at the key documents you’ll encounter and how to treat them.
5.1 LOI / ICPO
LOI (Letter of Intent) and ICPO (Irrevocable Corporate Purchase Order) often appear early in negotiations.
They express interest and basic terms, but they are not the same as fully executed contracts.
Use them carefully:
Put them on your official letterhead, signed by authorized signatories.
Avoid including full bank details at an early stage unless dealing with a verified, reputable counterparty.
Understand that an LOI/ICPO can be misused by brokers or scammers trying to prove they “have buyers.”
5.2 SCO / FCO
SCO (Soft Corporate Offer) or FCO (Full Corporate Offer) outlines a seller’s proposed terms.
A serious SCO/FCO will:
Be on company letterhead
Include clear contact details for the seller
Match the seller’s known capabilities and business focus
Reflect reasonable, market‑based pricing and terms
Red flags:
SCOs broadcast widely in WhatsApp, Telegram, or email groups with no clear connection to a verified company
Unrealistic discounts (for example, Platts minus $150/MT for clean products without any clear reason)
Long broker chains and unclear commission structures
A detailed look at downstream infrastructure connected to legitimate supply chains.
5.3 SPA (Sale and Purchase Agreement)
The SPA is where the real obligations sit. Key checks:
Names and details match the verified companies
Governing law and dispute resolution are credible and enforceable
Performance obligations and remedies are balanced
No hidden clauses that put you at extreme disadvantage
Always allow time for legal and compliance review before signing an SPA of any significant size.
5.4 BL, SGS, Q&Q Reports, Certificates
These are operational documents, used for actual cargoes:
Bill of Lading (BL) – evidence of shipment, key for LCs
Q&Q (Quantity & Quality) Reports – often from SGS, Bureau Veritas, or other recognized inspectors
Certificate of Origin – specifying where the cargo originated
Cargo Manifest / Packing Lists – for product shipments
Treat with care:
Operational documents show what has already happened, not what will happen for your future cargo.
Never assume that a BL or SGS report from an old transaction proves current supply capability.
Check that:
Document details (port, date, product, volume) match the story you’re being told.
The named companies and vessels are real and consistent with other information you’ve verified.
6. Common Oil and Gas Offer Scams and Red Flags
Knowing how to verify authentic offers in oil and gas also involves recognizing typical scam patterns.
6.1 Unrealistic Discounts and “Magic Margins”
If someone offers:
“EN590 with $200/MT discount to Platts”
“Brent crude at 40% below market”
“Jet fuel at half the normal price”
Ask yourself:
Why would the seller ignore established markets and give me this enormous margin?
Why hasn’t any major trader or refinery already taken this deal?
In a globally traded commodity, huge discounts rarely exist without:
Serious quality issues
Sanctions risk
Hidden costs
Or simple fraud
6.2 Long and Confusing Broker Chains
You might find yourself speaking to someone who:
Cannot name the actual seller or buyer
Mentions “mandates,” “sub‑mandates,” “facilitators,” and “connectors”
Cannot explain the complete chain from origin to destination
Each extra link increases:
Miscommunication
Risk of fraud or non‑performance
Legal uncertainty (who is responsible for what?)
Aim to work as directly as possible with:
The actual seller (producer, NOC, refinery, trading house)
The actual buyer (refinery, large end‑user, or properly capitalized trader)
6.3 Fake NOC / Major Oil Company Allocations
Common examples include:
“NNPC allocation” offers in Nigeria
“Rosneft/Lukoil” allocations for Russian crude and products
“ADNOC/Aramco direct mandates” circulating on LinkedIn and messaging apps
Typical red flags:
Small, unknown companies claiming massive direct allocations from large NOCs
No official documentation that can be verified with the supposed NOC
Demands for “registration fees” or “allocation activation payments”
Genuine NOC allocations are usually handled through:
Transparent tender processes
Known trading arms and established market participants
Always verify such claims directly with the NOC, using contact channels you trust (e.g., contacts found through their official website or industry events).
6.4 TTO/TTA and Tank Farm Scams
TTO (Tank‑to‑Tank Operations)
TTA (Tank Transfer Agreements)
These are especially common in West African and Russian product offers.
Red flags:
Claims that product is stored in a known tank farm, but:
No independent inspection is allowed
The tank farm denies their presence when contacted
Requests for:
“Injection fees”
“Dip test fees”
“TTT charges”
paid in advance to private accounts
Verification steps:
Contact the tank farm directly via their official website or phone.
Use independent inspectors to confirm product existence and quality.
Confirm storage contracts are genuine, and in the name of the claimed party.
6.5 Upfront Fees for “Registration,” “Verification,” or “Clearance”
Classic pattern:
“Before we can register you as a buyer with the NOC/refinery, you must pay $30,000 for documentation/registration/clearance through our contact.”
In legitimate deals:
Fees are tied to concrete services (inspection, freight, legal work) with real invoices.
They are paid to known service providers or included in the price structure.
Refuse to pay:
Vague, non‑refundable, upfront fees to private individuals or unverified entities.
“Security deposits” or “goodfaith deposits” outside of normal banking or escrow arrangements.
7. Tools and Resources for Global Verification
To fully apply how to verify authentic offers in oil and gas worldwide, you need a practical toolkit.
Intertek, Cotecna, Alex Stewart, and others, depending on region
7.4 Professional Support
Consider relationships with:
Energy and commodity law firms in major hubs (London, Geneva, Singapore, Houston, Dubai)
Reputable commodity trading companies and brokers with visible track records
Banks with strong trade finance capabilities
Local consultants in key producing and trading regions (West Africa, Middle East, CIS, Asia, etc.)
Professional fees are usually much smaller than the cost of a bad deal.
8. Mindset: Balancing Opportunity and Caution
How you think is just as important as the tools you use when learning how to verify authentic offers in oil and gas.
8.1 Be Skeptical, Not Cynical
Healthy skepticism:
Assume nothing until it’s independently verified.
Question documents, stories, and timelines.
But don’t let skepticism turn into paralysis. Real opportunities do exist. The goal is to filter efficiently, not to distrust everything forever.
8.2 Avoid Greed Traps
Many people get burned because they fall in love with:
Outsized discounts
Massive commissions
Volumes far beyond their realistic capacity
Ask:
Does this deal make sense in the context of global market pricing?
Who is supposedly losing money so that I can earn this “amazing” margin?
If you cannot logically explain the economics, step back.
8.3 Process Over Emotion
Create a standard verification process, for example:
Clarify the offer
Verify company
Verify people
Screen for sanctions and compliance
Check commodity and logistics claims
Verify financial instruments
Review legal structure
Start small and scale based on performance
Then follow this process every time, no matter how exciting the opportunity seems or how much pressure others apply.
9. Quick Reference Checklist: How to Verify Authentic Offers in Oil and Gas
Here’s a distilled checklist you can keep handy.
Clarify the Offer
Product/asset
Quantity and schedule
Incoterms and locations
Price formula and payment terms
Verify the Company
Legal registration in official registry
Business sector matches claimed activity
Age and history of the company
Real address, phone, and professional domain
Verify the People
Identity and position
Corporate email and phone
LinkedIn profile and career history
Authority to act/sign on behalf of the company
Screen for Sanctions and Compliance
Use OFAC, EU, UN, HMT lists
Check countries, vessels, and banks
Verify Commodity and Source
Origin, specs, quantities, schedule
Clear description of the full logistics chain
Check Logistics and Vessels
Vessels verified via MarineTraffic, VesselFinder, etc.
Ports and terminals confirmed as real and suitable
Third‑party inspection allowed by recognizable firms
Verify Financial Instruments
Only through bank‑to‑bank SWIFT
Avoid screenshots and non‑bank “confirmations”
Review Contract Structure
Complete, balanced SPA or agreement
No strange upfront fees or heavily one‑sided clauses
Recognize Typical Scams
Unrealistic discounts
Long broker chains
Fake NOC/refinery allocations
TTO/TTA scams
“Registration” or “verification” fee demands
Use Professional Support
Lawyers, banks, inspectors, local experts as needed
Start Small, Then Scale
Trial shipments or pilot projects
Increase size only after proven performance
Monitor Continuously
Performance, reputation, and regulatory changes over time
10. FAQ: How to Verify Authentic Offers in Oil and Gas
10.1 How can I quickly tell if an oil and gas offer is likely fake?
Signs that an offer is probably not authentic:
Huge discounts far below market without clear explanation
Only free email addresses (Gmail, Yahoo) and no corporate domain
No verifiable company registration or physical office
Long chains of brokers, “mandates,” and intermediaries
Pressure to pay upfront fees (registration, POP, allocation activation)
If you see several of these at once, walk away or move extremely carefully.
10.2 Is an LOI or ICPO enough proof that a buyer is real?
No. An LOI or ICPO shows interest, not capacity or performance history. To verify a real buyer, especially in large deals, you often need:
KYC documentation
Bank references and confirmation of payment capability
A history of successful transactions if available
Use LOIs/ICPOs as part of the process, not as the sole basis of trust.
10.3 How many times should I use KYC and due diligence?
Every time the counterparty or situation changes significantly:
New supplier or buyer
New country or sanction‑sensitive region
New financial structure
For long‑term relationships, refresh KYC and due diligence periodically (for example, annually) or if any red flag appears.
10.4 What if the offer looks good but the seller refuses third‑party inspection?
This is a serious warning sign. In legitimate oil and gas deals, especially international ones, independent inspection by recognized companies is standard practice.
If they refuse:
Ask for a clear, logical explanation.
Propose alternative inspection arrangements with neutral parties.
If they still resist, the safest path is usually to walk away.
10.5 Can small companies ever be genuine sellers in oil and gas?
Yes, small and mid‑sized companies can be genuine suppliers, traders, or service providers. Size isn’t the issue. The key is:
Verifiable registration and track record
Clear role in the supply chain (e.g., niche trader, aggregator, local storage provider)
Transparent and realistic terms
Your verification process should be the same, whether the counterparty is a giant NOC or a small local trader.
11. Conclusion: Building a Safer Path in Oil and Gas
The global energy trade will always mix real opportunity with real danger. Understanding how to verify authentic offers in oil and gas is one of the most valuable skills you can develop if you want to survive – and grow – in this industry.
Remember:
Never let urgency or greed push you to skip verification steps.
Always verify the people, the company, the commodity, and the money.
Use official registries, sanctions lists, vessel tools, banks, inspectors, and lawyers.
Start small, then scale only after consistent performance.
Building trusted, verified relationships is the foundation of safe oil transactions.
Over time, a disciplined, human‑centered approach to verification will help you:
Protect your capital
Protect your name and reputation
Attract better, more serious partners
Build a sustainable business around real, not imaginary, deals
Disclaimer: The information provided in this article on OilGasSafeGuide.com is for educational purposes only. It does not constitute legal or financial advice. Always consult with qualified professionals and perform your own due diligence before entering into any financial agreements.
OGSG
0 responses to “How to Verify Authentic Offers in Oil and Gas”
0 responses to “How to Verify Authentic Offers in Oil and Gas”