SUBSCRIBER NOTE: Platts to rename, revise Eagle Ford FOB Corpus Christi assessments

S&P Global Platts will redefine and rename its Eagle Ford FOB Corpus Christi crude and condensate assessments as Eagle Ford crude and condensate FOB USGC, with effect from August 1, 2018, to more broadly reflect the evolving regional export market. In line with this change, Platts will discontinue its Eagle Ford FOB Houston crude and condensate assessments with effect from September 4, 2018.

The decision follows a July 23 proposal note and period of time for feedback.

To reflect this changing market, Platts will consider values for Eagle Ford crude and condensate cargoes on an FOB basis from locations along the USGC. Eagle Ford typically has been exported from Corpus Christi and Houston, where it is often referred to as South Texas Sweet. Platts may consider exports from other locations that could include Texas City, Beaumont, Nederland and Port Arthur. The most competitive location would set the values for the Eagle Ford crude and condensate FOB USGC assessments.

The revised assessments will continue to reflect Aframax vessels, with a typical size of about 600,000 barrels. Platts recognizes not all Aframaxes may hold the same amount of crude oil or condensate, and that characteristics of the barrels as well as port restrictions may change the amount able to be loaded.

FOB HOUSTON DISCONTINUATION: With multiple locations reflected in the redefined Eagle Ford FOB USGC assessments, Platts therefore will discontinue its assessments of Eagle Ford crude and condensate FOB Houston, with effect September 4. The affected assessments are:

ASSESSMENT NAME CODE Eagle Ford Crude FOB Houston AAYAV00 Eagle Ford Crude FOB Houston vs forward WTI AAYAW00 Eagle Ford Condensate FOB Houston AAYBB00 Eagle Ford Condensate FOB Houston vs forward WTI AAYBC00

The following methodology changes for the assessments will take effect August 1:

CHANGE IN CONDENSATE SPECIFICATION: Platts will reflect 52 API oil in its Eagle Ford condensate assessments, down from the current 55 API specification. There is significant variance in the gravity of Eagle Ford oil at the wellhead, though the commonly traded streams are Eagle Ford 45 and Eagle Ford 52, and to a lesser extent, Eagle Ford 60. The Platts Eagle Ford crude assessment will continue to reflect 45 API barrels.

TIMING: The revised assessments will reflect a laycan of 15-45 days forward. For example, on August 1, Platts will assess Eagle Ford FOB USGC cargoes loading August 16-September 15. This change will align with the revised WTI FOB USGC and new Bakken FOB USGC assessments. Currently, the Platts Eagle Ford FOB Corpus Christi assessments roll to the second month forward on the 15th of the month.

DIFFERENTIAL BASIS: The revised differential will reflect the value of Eagle Ford crude and condensate FOB USGC cargoes versus a 15-45 day NYMEX WTI Light Sweet Crude Oil futures strip. This is a change from the existing cash WTI CMA basis.

RENAMING ASSESSMENTS: Platts will rename the Eagle Ford crude and condensate FOB Corpus Christi assessments and related differentials to the following:

ASSESSMENT NAME CODE Eagle Ford Crude FOB USGC AAYAT00 Eagle Ford Crude FOB USGC vs NYMEX WTI strip AAYAU00 Eagle Ford Condensate FOB USGC AAYAR00 Eagle Ford Condensate FOB USGC vs NYMEX WTI strip AAYAS00

MOC GUIDELINES: Platts will publish bids, offers and trades for Eagle Ford crude and condensate FOB USGC cargoes during the Market on Close assessment process, with clearly stated locations and dates.

The Eagle Ford assessments appear on Platts Global Alert pages 210, 214, 222 and 260; in the Crude Oil Marketwire, North American Crude and Products Scan and Oilgram Price Report publications; and in the Platts price database.

Please send any questions or comments to americas_crude@spglobal.com and pricegroup@spglobal.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.