Platts to amend Platts European Sour Crude Index from July 1

Platts, part of S&P Global Energy, will 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 July 1.

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 will amend the index basket to reflect the following assessments:

• Johan Sverdrup CIF Rotterdam
• Buzios CFR Rotterdam
• Liza CFR Rotterdam
• Kirkuk CFR Augusta
• KEBCO CIF Augusta

In line with a proposal published on March 25 and a feedback extension published on April 14, the Platts European sour crude index will be calculated as an evenly weighted average of the five assessments and will continue to be published both as an outright price and as a differential to forward Dated Brent.

The revised 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 these amendments, Platts will 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 will 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 will follow the London publication calendar. Liza CFR Rotterdam will 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]

From July 1, the differential assessment will 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.

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.