Subscriber note: Platts to launch new Russia crude netbacks

Platts plans to launch a series of price netbacks and associated data to expand coverage beyond its existing Russian domestic crude oil assessments. From February 20, 2012, Platts intends to start publishing (1) a netback value for Urals crude oil, free in pipe at the Western Siberian supply point of Surgut; (2) associated netback values for ten other delivery points within Russia; (3) a stand-alone domestic market differential to the netback value; (4) trans-shipment costs at Primorsk and Novorossiisk; (5) pipeline costs between Surgut and all locations for which netback values will be determined and (6) the Ruble/US dollar exchange rate at precisely 16:30 Moscow time. In addition to the Surgut netback, Platts will publish netback values for Moscow, Nizhnevartovsk, Samara, Volgograd, Novorossiisk, Nizhniy Novgorod, Ryazan, Ufa, Yaroslavl and Primorsk. Platts' primary Surgut netback value will be derived by subtracting local trans-shipment costs, export duty and the pipeline cost of shipping crude from Surgut to the Baltic port of Primorsk and the Black Sea port of Novorossisk, from the spot value of Urals for each location at 16:30 Moscow time. Platts will add VAT to the two resulting Surgut netback values, and average the two to derive a single Surgut value. All other netbacks will be calculated by adding the cost of shipment to each destination to the Sugut netback. For example, Platts' Moscow netback will reflect the Surgut netback plus the pipeline cost to Moscow. For further details on the calculation method and methodology details, please contact europe_crude@platts.com and pricegroup@platts.com.