Platts launches 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 has launched 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.

This follows a proposal note published Aug. 14 and a decision note published Oct. 4:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/081423-platts-proposes-to-launch-cif-rotterdam-johan-sverdrup-assessment-nov-1

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/100423-platts-will-launch-cif-rotterdam-johan-sverdrup-assessment-nov-1

The new assessments 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.

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 CIF Rotterdam Johan Sverdrup assessments reflect 700,000 barrel cargoes for delivery into Rotterdam 12 days to a month ahead from the assessment date.

The CIF Rotterdam Johan Sverdrup assessments reflect deliveries in the range from Gibraltar up to and including the Baltic Sea. Vessels are required to have the appropriate charterparty options to deliver in the Baltic Sea in addition to the UKC range of Gibraltar up to the Baltic Sea.

Platts understands that Johan Sverdrup typically prices on a five after deemed B/L basis, and as such for CIF Rotterdam Johan Sverdrup, Platts will publish bids, offers and trades pricing on a five day after deemed B/L basis as standard. Bids, offers and trades may also be published as a differential to Cash BFOE or as a Flat Price.

In the absence of CIF Rotterdam Johan Sverdrup indications, the CIF Rotterdam assessment will be linked to the existing FOB Mongstad assessment using the spot freight rate between Mongstad and Rotterdam on the date of the assessment. CIF Rotterdam Johan Sverdrup offers will be netted back to FOB-equivalent values using the Mongstad-Rotterdam Freight Adjustment Factor [FMGRM00].

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.

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