Why TSA, TSR, and CPA Should Not Be Part of Petroleum Sales Procedures
There is a critical issue that every refinery and serious market participant must clearly understand: documents such as TSA (Tank Storage Agreement), TSR (Tank Storage Report), and CPA (Corporate Purchase Agreement) should never be circulated as part of a petroleum sales procedure.
These documents contain highly confidential commercial information. Therefore, if any company provides TSA, TSR, or CPA documents to third parties during a sales process, this is a strong indication that the documents are either misused, misrepresented, or entirely fabricated.
Confidentiality in Tank Storage and Refinery Operations
Reputable tank storage and terminal operators—including VOPAK, KOOLE, VTTI, RUBIS, as well as KADOIL, BALPET, TURKISH ENERJI, and GLOBAL TANK FARM in Türkiye—never allow their contracts to circulate externally.
These agreements:
- Contain private commercial terms
- Define confidential operational responsibilities
- Remain strictly between contracting parties
As a result, no legitimate refinery or tank operator distributes such contracts for marketing or sales purposes. Any procedure that includes TSA, TSR, or CPA should therefore be rejected immediately.
Proof of Product Comes Before Any Documentation
The first and most important step in any petroleum sale is proof of product existence.
However, it is crucial to clarify a common misconception:
An SGS report does not prove ownership.
An SGS report only confirms:
- Product specifications
- Test results at a specific time
- Compliance with quality standards
It does not indicate who owns the product, who controls it, or who has the legal right to sell it.
Why Buyers Should Conduct Product Testing
Serious buyers always prefer to test the product themselves. Therefore, SGS testing should be initiated and paid for by the buyer, not the seller.
This approach provides several advantages:
- The buyer demonstrates real purchasing intent
- The testing cost belongs to the buyer
- The buyer can use the report for bank and end-user approvals
- The seller avoids unnecessary disputes
Moreover, only companies with real financial capacity are willing to pay for independent testing. Consequently, SGS testing acts as a natural filter against non-serious buyers.
Refusing Product Testing Is a Red Flag
If a seller refuses to allow product testing, this behavior raises immediate concerns. This refusal makes no commercial sense because:
- The product already belongs to the seller
- The product is stored in a tank or on a vessel under the seller’s name
- Testing does not affect ownership or commercial rights
In practice, only serious buyers pay for testing, and sellers should welcome this step rather than avoid it.
A Call to Refineries: Simplify and Modernize Sales Procedures
Refineries must move away from outdated, document-heavy, and confusing sales procedures. The market no longer tolerates unnecessary complexity.
The most effective and reliable sales structure is simple, fast, and transparent.
The Only Valid and Secure Sales Structure
The most efficient petroleum sales method remains:
ICPO + Commercial Invoice + Full Proof of Product + Dip and Pay
Regardless of whether the product is stored:
- In a tank terminal
- On board a vessel
Dip and Pay remains the safest, fastest, and most transparent execution method.
ATABAS GROUP’s Trading Policy
At ATABAS GROUP, we strictly follow this structure.
We only purchase petroleum products through Dip and Pay procedures and do not engage in any transaction that relies on TSA, TSR, CPA, or similar documents.
This approach protects all parties, eliminates ambiguity, and ensures that every transaction reflects real product, real buyers, and real payments.