SUBSCRIBER NOTE: Platts details Month-Ahead Brent implementation plan

Following continued feedback and extensive engagement since 2011, Platts is now providing more details regarding its plans to move to full month-ahead assessment processes for its North Sea Dated Brent (BFOE), cash BFOE, and related markets. Platts intends to move its Brent assessment processes to reflect a month-ahead schedule with effect from February 2, 2015, for cargoes loading the following month. This move will allow Platts North Sea crude oil assessment methodology to continue reflecting trends towards trading cargoes further forward in time in the North Sea market. Please send any comments and questions and feedback by November 7, 2014 on all aspects of this methodology to europe_crude@platts.com and pricegroup@platts.com. For written comments, please provide a clear indication whether the feedback is 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. Details of the Month-ahead Brent implementation follow: TIME SPAN REFLECTED IN THE ASSESSMENT: With effect starting Feb 2, 2015 Platts Dated Brent assessments will reflect cargoes scheduled for loading between 10 days to a full month ahead forward from the date of publication. This means the furthest forward loading date reflected in the Dated Brent assessment will fall on the corresponding date of the following month. For example, on February 2, Platts Dated Brent assessment will reflect cargoes loading between February 12 (10 days ahead) and March 2 (month ahead). On that day, the first BFOE cargo that can be bid, offered or traded in the Platts Market on Close assessment process will be any February 12-14 cargo; the last BFOE cargo that can be bid, offered or traded in the Platts MOC will be any March 2-4 cargo. Similarly, on February 3, Platts Dated Brent assessment will reflect cargoes loading between February 13 and March 3. On that day, the first BFOE cargo that can be bid, offered or traded in the Platts Market on Close assessment process will be any February 13-15 cargo; the last BFOE cargo that can be bid, offered or traded in the Platts MOC will be any March 3-5 cargo. MONTH-AHEAD NOMINATION: Month-ahead nominations against cargoes loading in any given month should occur on the corresponding date of the preceding month. So for example a cargo loading March 2-4 would be nominated on February 2. TIME SPAN ADJUSTMENTS: The date range reflected in Platts Dated Brent assessments will continue to adjust when needed for weekends and public holidays, as they do now. They will also adjust at the end of an assessment month when necessary to reflect shorter and longer months ahead. For example, on February 27, the last working day of the month, the assessment range will be March 9 to March 30 (reflecting a longer month ahead). On January 29, 2016, the assessment range would be February 8 to February 28 (reflecting a shorter month ahead). All cargoes must be chained by the last working day of the month. This is of importance on those months that have fewer days than the following month. For instance, on February 27, 2015, the Platts Dated Brent assessment would reflect dated cargoes loading on March 27-29, March 28-30, March 29-31 and March 30-April 1. NORTH SEA LOADING PROGRAMS: North Sea loading programs reflected in the Platts Market on Close assessment process for Dated BFOE and related instruments should be released latest on the first working day of the preceding month, in-line with a month-ahead process. Platts has engaged closely with loading program issuers since 2011, and continues to do so. Platts understands that BFOE loading schedules will be made available in line with the market's continued evolution towards further forward trading. CASH BFOE: When this change is implemented, Platts will only consider in its assessment of cash Brent (BFOE) those crudes where the cargoes are nominated a full month ahead of loading, instead of the current 25 days. FRONT-MONTH CASH BFOE: Platts will continue to publish a front-month cash BFOE assessment, but this assessment will be derived by applying the time spread that prevails between that cash BFOE month and the next cash BFOE month at the time that the month rolls to become month-ahead. For example, Platts will publish a March cash BFOE assessment during the month of February; this will be derived by applying the March/April cash BFOE spread that was assessed on the final assessment day of January to the observable value of April BFOE assessed each day in February. An April cash BFOE value would be published in the same way through the month of March: by applying the final April/May cash spread assessed in the last working day in February to the prevailing May cash BFOE assessment throughout March. Platts continues to study the suspension of a month-ahead BFOE published value, and proposes to do so with effect from January 1, 2016. FULL ASSESSMENT CALENDAR: Platts is publishing on its website a full calendar for 2015, illustrating in detail what cargo loading dates will be reflected on each day of assessment. The calendar also contains the date of anticipated release of the cargo loading programs for them to be in line with the new month-ahead Brent assessment process. A web link for this calendar will be announced shortly. IMPLEMENTATION DATE: This update will be effective for Brent, Forties, Oseberg and Ekofisk cargoes loading March 2015 onwards and will become effective February 2, 2015. ALTERNATIVE CRUDE DELIVERIES: Platts continues to review the potential to reflect more crudes as deliverable into its Brent assessment processes. Currently, Platts reflects deliveries of Brent, Forties, Ekofisk and Oseberg in these assessments. FURTHER INFORMATION: Platts will host a Technical Workshop at its Canary Wharf office on October 20 to discuss all matters related to the month-ahead change in the BFOE mechanism. Platts is also planning to host a webinar to review these changes. Full details and invitations will be sent out in due course. Platts will also publish a more detailed FAQ document on its website. Platts will separately announce when this FAQ is released, and provide the web link. BACKGROUND: Platts confirmed in September 2011 that it was moving its Brent assessments to reflect a 10-25 days dated loading schedule. At the same time, Platts announced its proposal to move all Brent assessments to reflect a month ahead loading schedule with effect from 2015 or 2016. After more than a year of consultation on that proposal, Platts confirmed in February 2013 that it would implement this change with effect from 2015, and announced that the final assessments using a 25-day basis would be concluded on January 30, 2015. At the same time, Platts confirmed that its Brent assessments would thereafter reflect a month-ahead schedule. Platts also announced in February 2013 that it was studying a possible move to reflect Brent assessed using a 45-days basis with effect from 2020. Platts continues to request feedback on this concept, which remains under study.