SUBSCRIBER NOTE: Platts proposes to add Basrah Light, Basrah Heavy crude FOB assessments

S&P Global Platts proposes to begin publishing price assessments for Iraqi Basrah Light and Basrah Heavy crude oil cargoes on a FOB Basrah basis from November 1, 2017. These new assessments would complement existing Platts assessments for Basrah Light on a delivered US Gulf Coast basis.

The assessments would reflect cargoes of Basrah Light and Heavy crude, each 1 million barrels, loading from Iraq on a free-on-board basis.

In line with other Platts assessment for crude around the world and in the Middle East, Platts' new assessments would reflect crude traded on a destination-free basis. Spot market trades for crude with regional restrictions in place would be normalized in value to reflect open destination.

Platts would publish assessments for both grades for two consecutive months from the month of publication. For each grade, Platts would publish a differential to its official selling price for the month of loading as well as an outright price.

For example, in October Platts would publish outright prices and differentials to OSP for Basrah Light and Basrah Heavy cargoes loading in November (M+1) and December (M+2).

Platts would assess the value of Basrah Light and Heavy cargoes using information on bids, offers and trades during the Middle East sour Market on Close assessment process, trades on exchanges, tenders and in the over-the-counter markets.

The planned launch of these assessments follows an extended period of engagement with industry participants amid a steady evolution in the quality and markets for Basrah crude and their growing popularity among Asian refiners. Exports of Basrah Light and Basrah Heavy to Asia are estimated at 2 million b/d.

Iraq segregated the Basrah crude stream into Basrah Light and Basrah Heavy mid-2015 to improve and stabilize the quality of the crude oil it exports.

Publicly available crude assays indicate Basrah Light API of 29.90 degrees and sulfur content of around 2.93%, and Basrah Heavy typical API of 24 degrees and sulfur content of around 3.83%.

Combined exports of the two grades averaged about 3.24 million b/d in the first seven months of the year, according to Iraq's Oil Marketing Company, SOMO. Basrah Heavy comprises about a quarter of total exports from southern Iraq.

Please send all comments, feedback and questions to asia_crude@spglobal.com and pricegroup@spglobal.com by October 6, 2017.

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.