SUBSCRIBER NOTE: PLATTS TO IMPLEMENT 'FOB STRAITS' FROM JULY 2015

Following extensive feedback to its proposal published July 17 (http://www.platts.com/subscriber-notes-details/27441264), Platts confirms that it will amend the loadpoints reflected in its FOB Singapore assessments for fuel oil, middle distillates and gasoline, with effect from July 1, 2015.

From July 1, 2015, Platts FOB Singapore assessments will reflect "FOB Straits" bids, offers and transactions.

Platts has no plans to amend the nomenclature of its published FOB Singapore assessments and plans to continue to reference these assessments in all publications under the name of "FOB Singapore."

For FOB Straits bids and offers, buyers and sellers should not state a specific loadpoint at the point of communication to Platts, and should proceed to nominate loading from one of the locations in Singapore and Malaysia that are already approved for the Platts Market on Close assessment process.

For FOB Straits transactions, sellers should nominate an approved loadpoint ten days prior to loading for all products. Such approved loadpoints may include approved terminals in Singapore, or southern Malaysia.

As part of this implementation, Platts confirms that nominations for loading out of a terminal in Malaysia should not cause undue financial harm to a buyer, relative to receiving a nomination out of a Singapore terminal. Any demonstrable incremental costs incurred by the buyer from a Malaysian terminal nomination, including cabotage for onward deliveries into Malaysia itself, should be costs borne by the seller in the MOC process.

Under this revised approach, from July 1, 2015, Platts will no longer publish FOB Singapore or FOB Malaysia bids, offers or transactions in its Market on Close assessment process. Platts will only publish bids and offers and transactions as FOB Straits.

This proposed change in methodology reflects the fact that the Singapore refined oil products markets have grown significantly in the last several years. The associated spot markets now regularly include trades for commodities loading close to, but beyond the geographic borders of, Singapore.

In 2013, Platts reported 54 physical trades for oil products loading in terminals in Malaysia during its Market on Close assessment processes. To reiterate, under current Platts methodology, Platts FOB Singapore assessments have reflected "FOB Singapore" bids, offers and transactions, as well as "FOB Malaysia" offers and transactions, published during the Market on Close assessment process but from July 1, 2015, Platts will only reflect FOB Straits bids, offers and transactions.

Please send all comments, feedback and questions to pl_asia_oilproducts@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.