SUBSCRIBER NOTE: Platts seeks feedback to reflect Indonesia Karimun in Singapore MOC process

S&P Global Platts is considering a proposal to publish offers of oil product cargoes loading from PT Oiltanking Karimun Terminal, Indonesia, in the Singapore Market on Close assessment process for gasoil, jet fuel and gasoline starting July 3, 2017.

Platts uses the Singapore MOC process to assess the value of oil across Asia and the Middle East. The benchmark FOB Singapore price assessments reflect FOB Straits bids, offers and trades, wherein the seller may nominate cargoes for loadings from approved terminals and floating storage units in Singapore and Malaysia.

Platts now proposes to begin publishing standalone offers of oil loading from Karimun. Platts would publish these offers on a FOB Indonesia basis, where the seller must clearly state the loading point as FOB Karimun at the time of communicating their interest to Platts for publication.

Platts would not publish FOB Indonesia bids. Sellers reflecting "FOB Straits" in published offers (as well as sellers expressing interest to hit published FOB Straits bids) may only deliver from approved terminals in Singapore and Malaysia under Platts assessment methodology. Sellers may not unilaterally nominate Karimun as a delivery point for deals done on a FOB Straits basis.

Platts may use the published price information from FOB Karimun in its FOB Singapore assessments after normalization. Platts uses normalization as an essential price adjustment technique to align reported market information to the base standard and location reflected in its price assessments.

Karimun would represent the first Indonesian delivery point in the Singapore MOC process. Any deals done on a FOB Karimun basis would be subject to the same performance requirements prevailing in the FOB Straits markets.

PT Oiltanking Karimun, a joint venture between Oiltanking GmbH and Gunvor Group was commissioned in mid-2016. The terminal, located in a free trade zone, has a total storage capacity of 730,000 cu m. The terminal has four deepwater berths and is able to accommodate vessels up to 320,000 dwt.

Please send any feedback or questions to asia_products@spglobal.com and pricegroup@spglobal.com by May 31, 2017. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.