LOIs meaning in oil and gas

Letters of Indemnity

An LOI is presented by a ship's captain to the receiver of crude or product at the point of the ship's discharge in place of the original bills of lading when the bills of lading (executed at loadport) are not available. Basically, the captain is assuring the receiver the he/she did sign the bills of lading and that the bills of lading will be available at later date. The LOI protects the receiver against future lawsuits, losses related to the title transfer of the oil.