SUBSCRIBER NOTE: PLATTS TO INCREASE NORTH SEA FORTIES DE-ESCALATOR OCTOBER 1

Effective October 1, 2012, the sulfur de-escalator to be applied in Forties cargoes and related instruments in the Platts North Sea assessment process will be $0.35/barrel per 0.1% weight of sulfur over the 0.6% wt standard, $0.15/b up from the current de-escalator value of $0.20/b, which has been in place since July 1, 2012. The de-escalator should apply to cargoes loading from October 1, 2012. Platts has revised the de-escalator in light of the recent widening differential between low- and high-sulfur crudes and products. Platts guidelines for its sulfur de-escalator use three significant figures for determination of sulfur-related payment. The test reflecting this figure should be the ASTM-D2622. Forties cargoes and all related instruments, including BFOE cash forwards, bid or offered through the Platts system must adhere to this standard. In addition, Platts will publish the sulfur de-escalator, representing the dollar value per 0.1% weight of sulfur, in its crude oil publications. Please send comments to europe_crude@platts.com and pricegroup@platts.com.