Introduction — Why Refineries Reject Any Buyer Who Sends Only an LOI

In 2025, no refinery, no title holder, no major allocation holder, and no institutional seller accepts a simple “Letter of Intent (LOI)” as proof of interest or capacity.
An LOI does nothing in real petroleum trading.
It is not binding, not verifiable, not bank-recognized, and not compliant with refinery protocols.

Yet 80% of buyers in global fuel procurement still send:

• LOI only

• No KYC

• No corporate documents

• No POF

• No procedure alignment

• No business profile

…and then wonder why sellers ignore them.

This article explains the real reasons refineries refuse LOIs, what serious buyers must provide, and how to pass refinery compliance in 2025.

SECTION 1 — Understanding the Context: Why LOI Has Zero Value in Petroleum

1.1 LOI Is Not a Legally Binding Document

A refinery cannot:

• Allocate tank

• Release POP

• Reserve quantity

• Schedule logistics

• Issue a CPA/ATV

• Trigger internal compliance

…based on a document that does not obligate the buyer or prove capacity.

LOI means nothing without the supporting documents.

1.2 Fraud, Scams, and Broker Chains Made LOIs Obsolete

Refineries receive thousands of “LOIs” every month from:

• Brokers pretending to be buyers

• Buyers without funds

• Companies that do not exist

• Gmail/Hotmail emails

• People who don’t know procedures

To protect themselves, refineries now require:

✔ KYC
✔ Corporate profile
✔ Proof of funds
✔ ICPO matching company details
✔ Clear procedure alignment
✔ Compliance screening

LOI is now considered a broker-level document, not a buyer document.

1.3 Refineries Need Verifiable Data Before Even Considering a Buyer

Real refineries operate like banking institutions.
Before entertaining a deal, they must verify:

• Company legitimacy

• UBO identity

• Sanctions status

• Corporate registration

• Past trading history

• Financial capability

• Bank readiness (RWA/BCL/MT799)

An LOI contains none of this.

SECTION 2 — Why LOI Is Rejected Immediately: A Technical Breakdown

Below is the exact refinery logic behind LOI rejection.

2.1 LOI Does Not Match Any Step in Official Procedure

Every refinery follows an A–Z structure:

1. KYC

2. Compliance screening

3. Buyer profiling

4. POF verification

5. SPA issuance

6. POP release

7. DTA

8. DIP test

9. MT103 / LC / SBLC

10. Injection or loading

LOI does not appear anywhere in this workflow.

2.2 LOI Cannot Be Used for Internal Refinery Approvals

Refinery departments (legal, risk, allocation, tank farm, finance) require documents with:

• Traceability

• Corporate responsibility

• Verification

• Bank-level data

LOI is not recognized by:

❌ Compliance
❌ Refinery management
❌ Terminal operators
❌ Banks
❌ SGS / Q&Q
❌ Security offices

Only KYC + ICPO are recognized.

2.3 LOIs Were Abused by Brokers for 10+ Years

Brokers used LOIs to:

• Pretend they had buyers

• Create fake chains

• Attract fake sellers

• Block allocations

• Attempt tank poaching

Refineries ended the practice permanently.

2.4 Without Proof of Funds, LOI = Zero Operational Value

A refinery cannot:

• Reserve a tank

• Block storage

• Prepare ATV/CPA

• Commit product

• Issue POP

…unless the buyer proves financial capacity through:

✔ MT799
✔ RWA
✔ BCL
✔ SBLC MT760
✔ LC MT700

LOI does none of this.

SECTION 3 — NNRV Expert Analysis: What Serious Buyers Must Provide Instead

Here is what real EN590/Jet A1/Crude buyers MUST present before being considered.

3.1 Full Corporate KYC (Mandatory)

A refinery requires the following:

• Certificate of incorporation

• Company registry extract

• UBO identification

• Passport copy of UBO(s)

• Tax certificate

• Proof of corporate address

• Company website

• Domain email (no Gmail/Hotmail)

Without this, zero chance of acceptance.

3.2 Corporate Profile (2–6 Pages)

Must include:

• Business activity

• Annual turnover

• Fuel consumption/distribution capacity

• Geographic areas served

• Management structure

• Past performance (general, non-sensitive)

This positions the buyer as institutional, not amateur.

3.3 ICPO (Not LOI)

ICPO must include:

• Exact specs

• Exact product

• Correct incoterm (FOB, CIF, TTT, TTV)

• Monthly quantity

• Contract duration

• Target port (Rotterdam, Houston, Fujairah, Jurong)

• Payment method (MT103/LC/SBLC)

• Procedure alignment

ICPO MUST match KYC → otherwise rejected.

3.4 Proof of Funds Readiness

Any of the following:

✔ MT799 (Bank-to-bank readiness)
✔ RWA (Ready, Willing & Able Letter)
✔ BCL (Bank Comfort Letter)
✔ SBLC MT760
✔ LC MT700

Screenshots or PDF statements = instant disqualification.

3.5 Buyer Professionalism Indicators Refineries Require

• Clear understanding of procedure

• No negotiation of refinery protocol

• No request for early POP

• No asking for tank numbers

• No editable documents

• No WhatsApp as primary communication

• No mixing CIF/FOB/TTT in the same ICPO

These are serious red flags to compliance.

SECTION 4 — Step-by-Step: How a Serious Buyer Is Processed (Day-by-Day Timeline)

📅 Day 1 — Buyer submits full KYC + Corporate Profile

Seller/refinery opens compliance file.

📅 Day 2–3 — Compliance screening

Sanctions check, business verification, UBO screening.

📅 Day 3–5 — ICPO review + procedure matching

📅 Day 5–7 — Request for Proof of Funds (MT799/RWA/BCL)

📅 Day 7–9 — Refinery approval → SPA issuance

📅 Day 9–12 — Buyer signs SPA → Seller countersigns

📅 Day 12–14 — Partial POP release

(ATV/CPA, Q&Q, TSR, etc.)

📅 Day 14–18 — DTA issued

For TTT/TTV procedures.

📅 Day 18–20 — DIP test (SGS)

📅 Day 20–25 — Buyer issues MT103

📅 Day 25–30 — Injection / loading

SECTION 5 — 20 Practical Q&A for Buyers and Sellers

10 Buyer Questions

1. Why is LOI not accepted?

2. Should I send ICPO before KYC? (No)

3. Can I start with MT103? (Depends)

4. Why must ICPO match KYC?

5. Why does refinery require POF first?

6. Why can’t I negotiate procedure?

7. Can LOI block product? (Never)

8. Should I ask for early POP? (No)

9. Do I need a tank for TTT? (Yes)

10. Can NNRV assist with compliance? (Yes)

10 Seller Questions

1. Should I accept LOI-only buyers? (No)

2. What documents must I ask buyers?

3. How to avoid fake buyers?

4. Should I issue POP without POF? (No)

5. Can a buyer send editable ICPO? (No)

6. What red flags indicate a broker chain?

7. Does refinery allow Gmail buyers? (No)

8. Should I release tank info early? (Never)

9. Should I ask for MT799? (Yes)

10. Can NNRV screen buyers? (Yes)

SECTION 6 — Why These Requirements Are Globally Recognized

Refinery compliance aligns with:

• FATF AML/CTF Protocols

• Basel III banking risk rules

• ICC Incoterms 2020

• OFAC/EU/UN sanctions guidelines

• ISPS terminal security rules

• SGS/Saybolt/Intertek inspection standards

The same rules used by:

• Vitol

• Trafigura

• Glencore

• Shell

• Mercuria

• BP

• TotalEnergies

This is why LOI-only buyers have no access to real supply.

SECTION 7 — Professional CTA (Highest Conversion)

📌 Ready to Become a Serious, Refinery-Approved Buyer?

NNRV Trade Partners helps buyers pass refinery compliance with:

• Clean KYC structuring

• Corporate profile development

• Proof of Funds preparation (RWA/BCL/MT799)

• ICPO drafting

• Procedure alignment

• SPA advisory

• Verification of seller legitimacy

📩 info@nnrvtradepartners.com
🌐 www.nnrvtradepartners.com

We make sure your ICPO is accepted the first time—no rejection, no confusion, no delays.

Mini FAQ (5 Key Questions)

1. Is LOI sufficient for petroleum trading?
   No — obsolete and rejected.

2. Can I send ICPO without corporate documents?
   No — compliance must verify you first.

3. Do refineries accept screenshots or PDFs?
   No — only bank-issued documents.

4. Why do sellers ignore my LOI?
   Because it proves nothing.

5. Can NNRV prepare my KYC + ICPO package?
   Yes — professionally and refinery compliant.

Why Choose NNRV Trade Partners?

• Institutional-level compliance

• Refined refinery knowledge

• Strict due diligence expertise

• Full transparency and confidentiality

• Support for buyers, sellers, mandates, funds

• Global operational capacity