SUBSCRIBER NOTE: Platts renames, revises Eagle Ford FOB Corpus Christi assessments

S&P Global Platts has redefined and renamed 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 change follows a July 23 proposal note and July 30 decision note.

To reflect this changing market, Platts is considering 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 sets the values for the Eagle Ford crude and condensate FOB USGC assessments.

The revised assessments 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 took effect August 1:

CHANGE IN CONDENSATE SPECIFICATION: Platts now reflects 52 API oil in its Eagle Ford condensate assessments, down from the previous 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 continues to reflect 45 API barrels.

TIMING: The revised assessments reflect a laycan of 15-45 days forward. For example, on August 1, Platts is assessing Eagle Ford FOB USGC cargoes loading August 16-September 15. This change aligns with the revised WTI FOB USGC and new Bakken FOB USGC assessments. Previously, 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 reflects 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 previous cash WTI CMA basis.

RENAMED ASSESSMENTS: Platts has renamed 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.