SUBSCRIBER NOTE: Platts opens formal review of additional crudes for Dated Brent

Following an extended period of public consultation and review, S&P Global Platts is opening a formal consultation regarding the possible inclusion of additional crude oil streams in the basket of crudes reflected in its Dated Brent benchmark, and all related assessments.

TROLL: In particular, Platts is considering the addition of Norway's Troll to the basket of crudes reflected in its Dated Brent FOB North Sea and Dated Brent CIF Rotterdam assessments as well as its Cash BFOE assessment.

Troll is a light sweet crude oil with a typical production of 10-15 cargoes of 600,000 barrels each month.

As is the case with the existing BFOE grades, Troll loads on an FOB basis, from the Mongstad terminal in Norway.

RATIONALE FOR POSSIBLE CHANGE: While production of benchmark crude grades has stabilized in the past few years compared with previous expectation of a steep decline, Platts believes that the addition of one or more FOB crude grades would provide additional volume to the Dated Brent complex, helping to ensure the continued robustness of the Dated Brent FOB benchmark.

CURRENT METHODOLOGY: Under Platts' current methodology, Platts publishes bids, offers and trades for Dated Cargoes of Brent Ninian Blend, Forties, Oseberg and Ekofisk loading in a period of 10 days to month ahead, and assesses each of these grades separately.

The Dated Brent assessment reflects the most competitive of these grades for each day in the loading period.

Platts also publishes CIF Rotterdam values for each of these grades, based on adjustments for freight and timing.

The Dated Brent CIF Rotterdam assessment reflects the most competitive value for each delivery day.

Platts also publishes assessments for Cash BFOE three months forward.

For these, Platts publishes bids, offers and transactions where the buyer is willing to take possible delivery of any of the four grades mentioned above (Brent Ninian Blend, Forties, Oseberg and Ekofisk).

Under this proposal, Troll would be included as a deliverable cargo into BFOE, and would thus be reflected across all Dated Brent assessments.

FEEDBACK: Platts invites comments, questions and other feedback on these proposals by January 31, 2017.

Specifically, Platts invites views on the merits of expanding the group of crudes reflected in its benchmark North Sea crude assessments, any logistical considerations, the possible inclusion of a quality premium, and the potential timing of such an update.

Platts will study all feedback received on these points and any other areas of interest, and provide an update on any possible changes to methodology after the close of the review period.

Please send all comments by January 31, 2017 to europe_crude@spglobal.com and pricegroup@spglobal.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.