SUBSCRIBER NOTE: Platts launches daily West African Crude Market Parity Prices

Effective August 1, 2018, S&P Global Platts has launched six new daily Market Parity Prices (MPP) for West African crude oil.

These new calculated prices reflect Platts understanding of refinery value of individual crude grades and market economics. Platts new MPP methodology will provide prices for crude grades with no or irregular spot market activity.

While Platts will continue to publish any spot market information heard regarding these crude grades, this information would not be used in the daily calculation of the MPP.

Platts will publish these MPPs in Crude Oil Marketwire, on Platts Global Alert page 1270 and under the following codes in the Platts pricing database:

Crude Grade Code Amenam AAXTI00 EA Blend AAXTJ00 Yoho AAXTK00 Asaramatoru AAXTV00 Abo AAXTL00 TEN AAXTW00

These new prices reflect the value of each of the above West African crudes on an outright price basis at 16:30 London time by calculating the gross product worth (GPW) of each crude grade and subtracting freight and refining costs, before applying an adjustment differential that reflects related market value.

In order to calculate the GPW of each crude grade, Platts Analytics has modeled the yield of the following products in a marginal Northwest European refinery, delivered Rotterdam:

Product Code Propane FOB NWE PMABB00 Butane FOB NWE PMAAL00 Naphtha FOB Rotterdam Barge PAAAM00 Gasoline Eurobob FOB AR Barge AAQZV00 Jet FOB Rdam Barge PJABA00 ULSD 10ppmS FOB ARA Barge AAJUS00 Gasoil 0.1%S FOB ARA Barge AAYWT00 FO 1%S FOB NWE Cargo PUAAM00

Platts then subtracts additional costs, such as freight, labor, capital, power, insurance, and chemicals and catalysts from this GPW model. Finally, Platts applies an adjustment differential derived by averaging the difference between the cost-adjusted GPW and the daily assessed price of the following four light, sweet crude grades:

Crude Grade Code Qua Iboe FOB Nigeria PCAID00 Azeri Light BTC FOB Ceyhan 80kt AAUFK00 Ekofisk FOB North Sea PCADI00 Gullfaks CIF Rotterdam AASAU00

The annual Worldscale flat rates used in the calculation for the four reference grades and six new MPP grades are as follows:

Crude Grade WS Flat Rate ($/mt) Qua Iboe 12.56 Azeri Light 11.10 Ekofisk 4.15 Gullfaks N/A Amenam 12.54 EA Blend 12.18 Yoho 12.45 Asaramatoru 13.14 Abo 12.05 TEN 10.80

For more information, a Frequently Asked Questions document will be made available shortly here: http://plts.co/g2Cf30lct7U

Please send any further comments and feedback to europe_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.