Platts to continue publishing both FOB and CIF/CFR Johan Sverdrup indications and reflect 100% of freight costs in freight adjustment from Jan. 4, 2027

Platts, part of S&P Global Energy, will continue to publish FOB Mongstad Johan Sverdrup bids, offers and trades in its Market on Close (MOC) assessment process. It will also launch a Johan Sverdrup Freight Adjustment, reflecting 100% of freight cost, to adjust CIF Rotterdam bids, offers and trades to a FOB Mongstad-equivalent basis for assessment purposes, effective Jan. 4, 2027.

PLATTS TO CONTINUE PUBLISHING FOB MONGSTAD BIDS, OFFERS AND TRADES

Following recent market feedback in response to Platts' proposal published Aug. 28, 2026, and available here, Platts will continue to publish FOB Johan Sverdrup bids, offers and trades in its MOC process and consider FOB information for assessment purposes from Jan. 4, 2027.

Participants who are intending to buy should not bid if there is a known or distinct possibility that cargoes will be unavailable to sell on the relevant incoterm basis.

Both FOB Mongstad Johan Sverdrup and CIF Rotterdam Johan Sverdrup assessments will continue to be assessed based on published bids, offers and trades.

In line with established methodology, should a firm CIF/CFR Rotterdam offer for Johan Sverdrup – after adjusting for freight, port fees and sailing time – be more competitive than a comparable FOB Mongstad bid, the CIF Rotterdam offer would take precedence in the final assessment of FOB Johan Sverdrup for the relevant loading dates.

FREIGHT ADJUSTMENT TO REFLECT 100% OF FREIGHT COSTS

The Johan Sverdrup Freight Adjustment will reflect 100% of freight costs. It will be calculated by applying the 10-day rolling average of the Platts Dirty 80,000 mt Cross-UK/Continent Worldscale assessment [TDUUW00] to the Mongstad-Rotterdam flat rate and adding the Rotterdam port fee.

The Johan Sverdrup Freight Adjustment will be published at 11 am London time, ahead of the assessment in which it will be used.

Platts typically updates the Rotterdam port fee annually and publishes it in a subscriber note on the first working day of each calendar year. The Mongstad-Rotterdam flat rate used in the calculation will be updated in line with the Worldscale Association.

From Jan. 4, CIF/CFR Rotterdam Johan Sverdrup indications will be netted back to a FOB Mongstad-equivalent basis using the new Johan Sverdrup Freight Adjustment. This will replace the current use of the Mongstad-Rotterdam Freight Adjustment Factor [FMGRM00], which reflects 80% of freight costs, for Johan Sverdrup.

This change reflects a higher share of cargoes remaining in Europe and a narrowing premium associated with the inherent optionality of FOB Johan Sverdrup cargoes, according to vessel-tracking data seen by Platts and feedback from market participants.

The Mongstad-Rotterdam Freight Adjustment Factor [FMGRM00] will continue to be used for Troll in Dated Brent.

Platts will continue to monitor OTC activity as market conditions evolve and welcomes further feedback on its Johan Sverdrup assessment methodology, including but not limited to publishing ice-class vessel options in CIF/CFR bids during the winter season.

Please send all feedback, comments, or questions to pl_crudeoileurope@spglobal.com and pricegroup@spglobal.com.

For written comments, please clearly indicate 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 to the public upon request.