Contractual Procedures

Arctic Oil Terminal ehf. operates under a structured contractual framework designed to provide clarity, transparency, and reliability for all clients utilizing our petroleum storage and terminal services. Our contractual procedures define the operational responsibilities, service terms, and commercial conditions that govern the use of terminal infrastructure and logistics services.

All service agreements are established through formal contracts between Arctic Oil Terminal and the contracting party. These agreements outline the specific scope of services to be provided, including petroleum storage, marine transfer operations, logistics coordination, and related terminal handling activities. The contractual framework ensures that both the terminal operator and the client maintain clear expectations regarding operational procedures, service availability, and performance standards.

Contracts are developed in accordance with applicable commercial practices and operational standards commonly used within the petroleum storage and logistics sector. This approach helps ensure consistency, reliability, and effective cooperation between Arctic Oil Terminal and its clients.

CLIENT must provide an updated corporate profile and valid business license. The CLIENT must also provide a product specification sheet along with full supplier/refinery/exporter details, or alternatively a refinery commitment letter.
Arctic Oil Terminal will provide the CLIENT with a lease agreement and the applicable commercial invoice, which confirms the storage reservation and outlines the payment commitment within the stipulated time.
The CLIENT must sign and return the lease agreement and commercial invoice, confirming their commitment to the transaction and the agreed storage arrangement.
The CLIENT must then proceed with payment according to the terms stated in the signed commercial invoice.
Once payment has been made, the CLIENT must provide an official bank transfer confirmation or payment receipt to Arctic Oil Terminal as proof of payment.
Upon confirmation of payment received in Arctic Oil Terminal’s account, and within approximately 36 business hours, a Tank Storage Receipt (TSR) will be issued to the CLIENT after receipt of the Notice of Readiness (NOR) from the supplier/refinery and the finalized product injection schedule.
Arctic Oil Terminal will establish operational communication with the CLIENT’s supplier, refinery, or exporter to coordinate and confirm the injection schedule for the petroleum product.
Upon completion of the reception of the petroleum product (First Splash) from the pipeline into the storage tanks, the number of storage days paid for by the LESSEE company will begin to count as the active storage period for the petroleum product.
The LESSEE company may appoint its inspection team to perform a Dip Test Inspection to verify the quality and quantity of the petroleum product received from the pipeline system into the storage tanks. The LESSEE may also lift or transfer the petroleum product from the storage tanks at any time within the validity period of the storage days purchased.