BAFT has published The Oil and Gas Industry: A Practical Guide to Independent Undertakings (the “Guide”) developed by its Oil & Commodity LC Working Group. This educational document reviews common terms found in the LCs and Demand Guarantees (collectively “Undertakings”) supporting this industry’s sales.
BAFT identified a need to harmonize and qualify specific terms and document types in these Undertakings to better serve the industry needs. The Guide addresses such topics as fluctuating pricing, reduction and due date clauses, etc. It assists in reviewing documents not specifically mentioned in the various rule sets (UCP, ISP and URDG) governing undertakings, such as pipeline certificates, book transfers, meter tickets, letters of indemnity (“LOIs), etc.
Guidance Document available to BAFT members here