Oil trading runs on a specific sequence of documents, and two of the most important are the ICPO and the SCO. If you are new to physical fuel deals, understanding this paperwork — and the order it comes in — is the fastest way to tell a professional counterparty from a time-waster.
The document sequence
A compliant transaction generally moves through these stages: LOI → SCO → ICPO → contract → POP / payment instrument → SGS inspection → delivery. Each document has a job.
What is an SCO (Soft Corporate Offer)?
The SCO is the seller’s opening, non-binding offer. It sets out product, specification, quantity, price, delivery terms (CIF/FOB) and validity. It is "soft" because it invites negotiation rather than committing either side. LinkPort issues an SCO in response to a buyer’s enquiry or LOI.
What is an ICPO (Irrevocable Corporate Purchase Order)?
The ICPO is the buyer’s formal commitment to purchase on the offered terms. "Irrevocable" signals the buyer is serious and ready to proceed to contract. A genuine ICPO contains the buyer’s corporate details, the product and volume, destination and Incoterm, and banking coordinates appropriate to the payment instrument.
Where LOI and NCNDA fit
An LOI (Letter of Intent) is a softer opening signal a buyer may send before the ICPO. If brokers are involved, an NCNDA/IMFPA is signed to protect their introductions and fees — see NCNDA & IMFPA explained.
Red flags in the paperwork
Be wary if the sequence is reversed (e.g. a seller demanding your ICPO and banking details before providing any offer), if documents are riddled with copy-paste errors, or if anyone treats an MT199/MT799 SWIFT message as "proof of funds/product". Our scam red-flags guide covers these. The clean version of the process is on our procedures page.
Frequently asked questions
Does the buyer or seller move first?
Typically the buyer opens with an LOI or ICPO, and the seller responds with an SCO — or the buyer issues an ICPO against an existing SCO. Either way, a written offer should exist before commitments are made.
Is an ICPO legally binding?
It signals firm intent and leads into the binding Sales & Purchase Agreement (SPA). The SPA is the definitive contract. Start the process on our contact page.