Platts proposes to launch CIF Rotterdam Johan Sverdrup assessment Nov. 1

As part of its commitment to provide insight into new trade flows, Platts, part of S&P Global Commodity Insights proposes to launch an assessment for Johan Sverdrup on a CIF Rotterdam basis, both on an outright basis as well as a differential to North Sea CIF Dated Brent Strip from Nov. 1.

The new assessments will complement Platts existing assessments of Johan Sverdrup FOB Mongstad (Platts symbol: AJSVA00) and differential to forward Dated Brent (Platts symbol: AJSVB00).

Since Russia's invasion of Ukraine and ensuing import ban on all seaborne Russian crude oil to the European Union from Dec. 5, 2022, Johan Sverdrup has become a heavier, sourer, baseload crude in Northwest Europe, according to vessel-tracking data seen by Platts.

The proposal follows requests from market participants for a delivered Northwest Europe Johan Sverdrup assessment to bring greater transparency to the value of sour crude delivered into the region in the absence of Russian Urals inflows.

Platts existing FOB Johan Sverdrup assessments, launched on Dec. 1, 2019, reflect 700,000-barrel cargoes loading from the Mongstad terminal 10 days to a month ahead.

The proposed CIF Rotterdam Johan Sverdrup assessments would reflect 700,000 barrel cargoes for delivery into Rotterdam 12 days to a month ahead.

In line with Platts existing North Sea grade CIF Rotterdam assessments, the CIF Rotterdam Johan Sverdrup assessment would reflect deliveries in the UK Continent (UKC) range from Gibraltar up to but not including the Baltic Sea.

Platts publishes North Sea crude CIF Rotterdam bids, offers and trades pricing on a 2-1-2 around deemed Bill of Lading (B/L) basis as standard.

Platts views the journey from Mongstad to Rotterdam, for both Troll and Johan Sverdrup, to be two days.

Johan Sverdrup has an API of 28 degrees and a sulfur content of 0.80%, according to assays seen by Platts.

The grade is a joint venture between Norway's Equinor, Aker BP, Total and Lundin, with Equinor acting as the terminal operator.

Please send all feedback, comments or questions to europe_crude@spglobal.com and pricegroup@spglobal.com Sept. 15.

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