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A European refinery was approached by a new oil buyer through an intermediary, claiming to represent a trading company capable of purchasing millions of barrels of crude oil. While initial documentation appeared complete, the refinery had concerns about the buyer’s legitimacy, operational capacity, and financial backing. Without independent verification, there was a high risk of compliance violations, wasted time, and potential financial loss.

Solution:

GeoEnergy Advisors conducted a comprehensive on-the-ground KYC verification for oil buyers. Our process included:​

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• Visiting the buyer’s registered office to confirm the physical presence and operational setup.

• Inspecting production and office facilities to validate ongoing business activities.

• Conducting in-person interviews with directors, managers, and key staff to assess company credibility.

• Cross-checking corporate registration documents, licenses, and trade history with local government and regulatory records.

• Verifying banking relationships, financial statements, and prior transaction history in the energy sector.

• Reviewing refinery mandate letters and confirming authenticity directly with issuing entities.

 

This holistic approach ensured both documentary verification and physical validation, leaving no room for doubt about the buyer’s legitimacy.

 

Result

The investigation confirmed that the buyer was a genuine, operational, and financially capable company. The refinery was able to proceed confidently, entering a compliant and risk-free crude oil transaction. The case highlighted the critical role of field KYC verification in the oil and gas sector, providing both risk mitigation and operational assurance.