Commissioners Role

Oil Trading Commissions & Protection

🛡️ Commission Protection Assurance

Dear Valued Commissioner / Broker,

We understand your concern:

“If I share the buyer’s profile, will my commission be protected — especially since NIOC doesn’t pay commissions directly?”

✅ Here’s the truth — clearly and confidently:

  • Yes, it’s true:
    “The Ministry of Oil or National Oil Company does NOT get involved in setting or paying these fees.”
    (Source: ctcoil.site/commissioners-role)
  • BUT — and this is critical:
    NIOC only works with verified networks that include Introducers, Brokers, and Mandates.
    They know they cannot operate in today’s sanctioned environment without trusted intermediaries like you.

💡 In practice:

Once your buyer passes NIOC’s due diligence,
The seller (as NIOC’s official mandate) will require the buyer to sign a Side Letter Agreement —
This agreement legally protects your commission (typically 0.25%–0.5% for Introducers).

📌 Why would the buyer agree?
Because NIOC won’t release cargo unless the full deal chain — including commission terms — is respected.
This isn’t “kindness”… it’s operational necessity.

🔐 Your role is safe because:

  • Commissions are private, off-contract, and confidential.
  • Paid outside the main transaction — no risk of exposure.
  • The seller ensures payment from their own margin, because they rely on you to bring real, bankable buyers.

🌍 In Iran’s oil trade, brokers aren’t optional — they’re essential.
And NIOC’s entire export system depends on this discreet, trusted ecosystem.

✨ So please — share the buyer’s profile with confidence.
We’ll ensure your commission is formally protected before any cargo moves.

With respect,

🛢️ Oil Trading Commissions & Deal Roles

In international oil contracts (e.g., SPA, CIF, or FOB), all broker commissions are defined separately in a “Side Letter Agreement” or “Commission Agreement” 📝.

👉 The Ministry of Oil or National Oil Company does NOT get involved in setting or paying these fees—except to verify the credibility of the parties ✅.

👥 Deal Chain Roles

  1. Seller / Mandate 🏢
    Holds the master contract with the Ministry or parent oil company.
  2. Buyer / Mandate 💼
    The entity that makes payment and takes delivery of the crude.
  3. Introducer / Finder 🤝
    Only connects the buyer; provides initial docs. No further involvement.
  4. Broker / Facilitator 🔄
    Actively manages the deal: LOI → ICPO → Contract → LC. Coordinates both sides.

💰 Typical Commission Structure

(As % of gross contract value)

Role Typical Commission
Active Broker 🧠 0.5% – 1%
Introducer 📩 0.25% – 0.5%
Official Mandate 🎖️ 1% – 1.5%
Chain of Brokers 🔗 Total ≤ 3% (usually 1.5% – 2%)
⚠️ The 3% ceiling is rare—it may happen only in exceptional cases (e.g., huge discounts granted by seller).
Most real-world deals stay in the 1.5% – 2% total commission range.

🔒 Important: Commissions are private, off-contract, and confidential.
Paid outside the main oil transaction.
No government or NOC involvement beyond KYC/credit checks.