SUBSCRIBER NOTE: Platts launches Abu Dhabi Umm Lulu crude assessments

SUBSCRIBER NOTE: Platts launches Abu Dhabi Umm Lulu crude assessments

S&P Global Platts has launched daily assessments for Abu Dhabi's light, sweet Umm Lulu crude effective March 1, 2019.

The assessments consist of an outright price and a differential to the grade's official selling price for cargoes loading two months from the month of assessment, in line with Platts' methodology for Middle East crude grades. For example, in March Platts will publish an outright price and a differential to the OSP for cargoes of Umm Lulu loading in May.

The outright assessment Umm Lulu FOB Abu Dhabi (AUFAA00) and differential assessment Umm Lulu FOB Abu Dhabi vs OSP (AUFAB00) appear on Platts Global Alert pages PGA 2210, PGA 2220, PGA 2221, PGA 2222 and PGA 2223, as well as Crude Oil Marketwire, Oilgram Price Report, and the Platts Price Average Supplement.

Umm Lulu assessment details: Symbol Description AUFAA00 Umm Lulu FOB Abu Dhabi AUFAB00 Umm Lulu FOB Abu Dhabi vs OSP AUFAA03 Umm Lulu FOB Abu Dhabi MAvg AUFAB03 Umm Lulu FOB Abu Dhabi vs OSP MAvg

Platts first proposed to launch Umm Lulu assessments in a subscriber note published on January 24, 2019: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/012419-pl atts-proposes-abu-dhabis-umm-lulu-crude-assessment-from-mar-2019

Abu Dhabi National Oil Company first began exporting Umm Lulu in July 2018. Current production of Umm Lulu is estimated to be around 55,000 b/d, which is expected to increase in coming years due to efforts to ramp up crude production by the UAE government.

ADNOC publishes the OSP as an outright price on a retroactive basis. Starting January 2019, Platts began publishing the Umm Lulu OSP announced by ADNOC for cargoes loaded in December 2018. Platts also publishes the Umm Lulu OSP differential to benchmark Dubai prices.

The OSP and its differential to Dubai are published on Platts Global Alert (PGA) Page 1051 under codes OSLUF00 and OSLUD00.

Umm Lulu, a light sweet crude oil grade with API of 38.9 and 0.7% sulfur content, is produced via offshore fields and transported to Zirku Island for shipments.

Abu Dhabi in 2018 awarded a 20% stake each to Spain's Cepsa and Austria's OMV in the offshore Umm Lulu and SARB concessions. Cepsa is wholly owned by Mubadala Investment Co., which also holds a 24.9% stake in OMV. ADNOC holds the remaining 60% stake in the concessions.

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