SUBSCRIBER NOTE: Platts seeks feedback on North Sea Quality Premium formula

Platts is seeking feedback on the methodology for determining the North Sea Ekofisk and Oseberg crude oil Quality Premiums, which follows an initial announcement March 15 and a further announcement September 16 that Platts would continue to review Quality Premiums to publicly analyze, review and address application issues. Platts introduced Quality Premiums for Oseberg and Ekofisk for cargoes loading from June 2013. Quality Premiums are paid by buyer to seller for the nomination of Oseberg or Ekofisk into a Cash BFOE contract. As part of this ongoing project, Platts is committed to seeking the most appropriate way of representing the prevailing value of crude for prompt physical delivery in Quality Premiums. Platts invites feedback on all aspects of the Quality Premiums, particularly the formula used in their calculation. As part of this process, Platts has indicated the formula could be enhanced by having the Quality Premium percentage rising to 60% from 50%. Moreover, Platts is also considering reducing the lag period by using only the previous second month to determine the Quality Premiums, rather than the current system using 1/3 of the third month and 2/3 of the second month. Please send any feedback by November 1 to europe_crude@platts.com and pricegroup@platts.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.