SUBSCRIBER NOTE: Platts details implementation of FOB Straits July 1

Following continued feedback and extensive engagement since July 2014, Platts is now providing more details regarding its plans to amend the loadpoints reflected in the Market on Close assessment process for its FOB Singapore assessments for fuel oil, middle distillates and gasoline.

Platts proposed this change in July 2014, and confirmed the change in December 2014, for implementation with effect from July 1, 2015.

Under this change, Platts has no plans to amend the nomenclature of its published FOB Singapore assessments and plans to continue to reference these assessments in all publications under the name of "FOB Singapore."

This change in methodology reflects the fact that the Singapore refined oil products markets have grown significantly in the last several years. The associated spot markets now regularly include trades for commodities loading close to, but beyond the geographic borders of, Singapore.

LOCATION BASIS FOR BIDS, OFFERS AND TRADES: From July 1, 2015, Platts FOB Singapore assessments will reflect "FOB Straits" bids, offers and transactions. For FOB Straits bids and offers, buyers and sellers should not state a specific loadpoint at the point of communication to Platts, and should proceed to nominate loading from one of the locations in Singapore and Malaysia that are already approved for the Platts Market on Close price assessment process.

Under this revised approach, from July 1, 2015, Platts will no longer publish FOB Singapore or FOB Malaysia bids, offers or transactions in its Market on Close assessment process. Platts will only publish bids and offers and transactions as FOB Straits.

APPROVED TERMINALS FOR NOMINATED MOC DELIVERIES: For FOB Straits transactions, 10 days prior to loading, sellers should nominate one of the following loadpoints in Singapore or southern Malaysia for the products listed:

Terminal Platts Gasoline Platts Jet Platts Gasoil Platts HSFO Helios Yes Yes Yes Yes Universal Yes Yes Yes Yes Horizon Yes Yes Yes Yes Tankstore Yes Yes Yes Yes SRC Yes Yes Yes Yes Oiltanking Yes Yes Yes Yes Shell Bukom Yes Yes Yes Yes XOM Jurong Yes Yes Yes Yes XOM PAC Yes Yes Yes Yes Tuas Yes Yes Yes Yes Vopak Sebarok Yes Yes Yes Yes Vopak Banyan Yes Yes Yes Yes Chevron Penjuru Yes Yes Yes Yes Power Seraya No Under Review Under Review Yes Senoko Power Yes Yes Yes No SPC Yes Yes Yes Yes Jurong Aromatics Corp Under Review Under Review Under Review Under Review Tanjung Langsat Yes Yes Yes Yes Tanjung Bin Yes Yes Yes Yes Tanjung Pengerang Yes Yes Yes No Far East Oil Terminal One No No No Yes

In addition to the above, please note that Jurong Aromatics Corporation is currently being reviewed as a loadpoint for gasoline, jet fuel, gasoil and MTBE. Power Seraya is being reviewed as a loadpoint for jet fuel and gasoil.

Any terminal nominated for performance on an FOB Straits transaction concluded during the Platts assessment process should typically be able to manage at least one co-load of standard-sized cargoes of 20,000 mt to 40,000 mt, for fuel oil, and 100,000 barrels to 250,000 barrels for jet fuel and gasoil.

For instance, a vessel that is already carrying 20,000 mt of fuel oil should be able to load at least another 20,000 mt from a second terminal, without draft restrictions hindering a vessel's ability to leave the port.

COST DIFFERENCES BETWEEN SINGAPORE AND MALAYSIA: As part of this implementation, Platts confirms that nominations for loading out of a terminal in Malaysia should not cause undue financial harm to a buyer, relative to receiving a nomination out of a Singapore terminal. Any demonstrable incremental costs incurred by the buyer from a Malaysian terminal nomination, including cabotage for onward deliveries into Malaysia itself, should be costs borne by the seller in the MOC process.

REVIEWS OF MOC TERMINALS AND TRADE DATA: It is critical for Platts to monitor the quality of the information submitted by companies wishing to participate in Platts MOC processes, including any infrastructure that will form part of the execution of that information.

Platts routinely, and as part of standard editorial practice, reviews the infrastructure reflected in its price assessment processes. These reviews ensure the suitability of data and information that are used to formulate Platts' end-of-day price assessments.

These reviews are conducted on a regular basis, and may take into consideration an array of issues including, but not limited to, operational and logistical issues, as well as counterparty acceptance.

The reviews are not designed to impede a company's ability to bilaterally engage in market transactions; the objective at all times is to ensure the integrity of published price assessments. Platts does not disclose the nature or scope of such routine reviews.

Please send all further comments, feedback and questions to pl_asia_oilproducts@platts.com and pricegroup@platts.com.

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.