Platts proposes to amend Platts European Sour Crude Index from May 11

Platts, part of S&P Global Energy, proposes to amend the basket of crudes comprising the Platts European Sour Crude Index (ESCI) to reflect a delivered Europe value inclusive of arbitrage crude grades, from May 11.

The current ESCI reflects a FOB North Sea value with a basket comprising three North Sea-loading grades.

In response to evolving trade flows in the European medium and sour crude markets, Platts proposes to amend the index basket to reflect the following assessments:

Johan Sverdrup CIF Rotterdam

Buzios CFR Rotterdam

Liza C F R Rotterdam

Kirkuk C F R Augusta

KEBCO CIF Augusta

Under the proposal, Platts European sour crude index would be calculated as an evenly weighted average of the five assessments and would continue to be published both as an outright price and as a differential to forward Dated Brent.

The proposed basket reflects feedback from market participants that the European medium and sour crude markets have evolved to comprise higher volumes of longer-haul crudes from Latin American and Middle Eastern producers in addition to native sour crudes.

Currently, the Platts European sour crude index is published as a volume-weighted average of the following assessments:

Johan Sverdrup FOB Mongstad: 65%

Grane FOB Sture: 30%

Flotta Gold FOB Flotta : 5%

Liza, Kirkuk net - forward values

As part of this proposal, Platts would launch two net forward calculations for Guyanese Liza and Iraqi Kirkuk on a CFR Rotterdam and CFR Augusta basis, respectively, reflecting their typical destinations within Europe. Both net-forwards will be published as an outright price and as a differential to forward Dated Brent.

These net - forward calculations would utilize Platts existing Liza FOB Guyana [ALIZB00] and Kirkuk FOB Ceyhan [AAGYF00] spot assessments in addition to the latest available Guyana -UKC Suezmax [DGUMV00] and Ceyhan-Med Aframax [ PFAJP10 ] assessments to derive a CFR Rotterdam and CFR Augusta value, respectively.

The publication of these assessments and the ESCI would follow the London publication calendar. Liza CFR Rotterdam would be calculated using the latest available published assessments for Liza FOB Guyana [ALIZB00] and Guyana-UKC Suezmax [DGUMV00], which follow the US publication schedule.

The index is published as both an outright value and as a differential to forward Dated Brent under the following symbols:

Platts European Sour Crude Index [CSBEA00]

European Sour Crude Index vs North Sea Dtd Strip [CSBEB00]

Under this proposal, the differential assessment would be renamed to Platts European Sour Crude Index vs Forward Dtd Strip and published under the same code [CSBEB00].

Please send all feedback and comments to europe.crude@spglobal.com and pricegroup@spglobal.com by April 9.

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.