Crude oil storage capacity

Offering

Contracted tank capacity for an agreed crude specification and storage term. This example uses segregated capacity. Commingled storage would require different inventory and quality terms.

Quantity

Working storage capacity in barrels. Minimum commitments and permitted increments are stated separately from receipt and withdrawal rates.

Contract term

A fixed storage term with entry, expiry and end-of-term removal obligations. Renewal is available only where the agreement provides it.

Product specification

Agreed crude quality limits, segregation requirements and acceptance procedures. Tank suitability is confirmed before bidding.

Receipt and withdrawal

Defined terminal connections, nomination windows and receipt and withdrawal limits. Throughput entitlement and additional movements are specified separately from tank capacity.

Price being bid

In this example, bidders offer a reservation rate in dollars per barrel per month for contracted working capacity. Throughput, handling, heating where required, and other agreed charges are stated separately.

Inventory limits

Minimum operating inventory, measurement and loss provisions, and end-of-term removal requirements are defined in the contract. Holdover terms do not imply an automatic renewal right.

Commercial value

Let bidders value capacity together with location access, movement rights and quality requirements. The operator can compare demand for a defined service rather than treating every barrel of tank space as equivalent.