Subscriber Notes / Methodology Updates

Singapore (Platts)--18Nov2015/523 am EST/1023 GMT
Following extensive feedback and market engagement, Platts intends to move
ahead with the proposed inclusion of Al Shaheen and Murban in its Dubai and
Oman crude oil benchmarks, and will continue to review the potential inclusion
of a Quality Premium for Murban. 

Platts has widely engaged on these proposals with stakeholders representing a
full range of market and industry participants in Asia, the Middle East and
Europe. 

Platts has received broad support for the proposed addition of the two crudes
following the launch of a formal consultation opened by Platts around the
proposal on September 3. 

There has been strong support for adding these alternative delivery crudes
promptly, to ensure significant volumes of crude for delivery continue to
underpin the Dubai and Oman benchmarks through 2016 and beyond. 

Accordingly, Platts intends to reflect bids and offers for Dubai and Oman that
reflect these new standards with effect from January 4, 2016, the first
publishing day of the year. As a result, these standards will take effect for
cargoes loading from March 2016, the prompt traded spot month in January 2016.
January and February partials and cargoes will continue to be assessed under
prevailing standards. 

The full September consultation can be reviewed at: 

http://www.platts.com/subscriber-notes-details/27773417

AL SHAHEEN: Platts Dubai crude assessments will reflect bids, offers and
expressions of interest to trade in Dubai partials where the buyer would be
willing to take delivery of 500,000 barrels of Al Shaheen or destination-free
Murban, as well as the possible deliveries of Dubai, Oman and Upper Zakum
already possible in the Platts assessment process. 

Sellers of cargoes of Al Shaheen in the Market on Close process should inform
buyers of the dates of the specific nominated cargo as soon as possible, and
at the latest before the end of the last trading day of the month of trade
execution.

MURBAN: Platts Oman assessments will reflect bids, offers and expressions of
interest to trade in Oman partials where the buyer is willing to take delivery
of destination-free Murban crude oil, as well as the possible delivery of Oman
Blend itself. Bids, offers and expressions of interest to trade for all other
partials in the MOC -- Dubai, Upper Zakum, and Murban itself -- would all also
be considered for publication only where the buyer is willing to take delivery
of destination-free Murban crude oil upon convergence. 

QUALITY PREMIUM: Platts will continue to study the potential inclusion of a
Quality Premium for Murban. A Quality Premium is paid by buyer to seller for
the nomination and delivery of a significantly higher quality crude oil
against a commitment. Platts noted support for the concept of a QP for Murban
deliveries and a range of views regarding potential calculation mechanisms,
and will continue to consult on the concept. 

Al SHAHEEN, MURBAN PARTIALS: To fully align Al Shaheen and Murban with the
rest of the basket of crudes reflected in the benchmarks, Platts will publish
bids, offers and intentions to trade for Al Shaheen and Murban partial cargoes
-- clip sizes of 25,000 barrels each, which converge to a full cargo of
500,000 barrels when the same seller and buyer converge on a single cargo when
they have traded the 20th partial. Partials already exist for Dubai, Oman and
Upper Zakum. 

ASSESSMENTS: Under this assessment process, Dubai, Upper Zakum, Oman, Al
Shaheen and Murban would all be deliverable against a Dubai partials
convergence. Only Upper Zakum and Murban would be deliverable against Upper
Zakum convergences; only Oman and Murban would be deliverable against Oman
convergences; only Al Shaheen and Murban would be deliverable against Al
Shaheen convergences; and only Murban would be deliverable against Murban
convergences. The Platts Dubai assessment will therefore reflect the most
competitive crude in the group. Platts Oman, Upper Zakum, Al Shaheen and
Murban values will be assessed in their own right, but no assessments would be
above the assessed value of Murban, the highest quality crude in the group.

BIDS AND OFFERS IN MOC: Under the planned methodology, offers for Al Shaheen,
Murban, Oman and Upper Zakum crudes submitted for publication in the Market on
Close assessment process could not be lower than an existing bid for Dubai
crude. Similarly, bids for Dubai, Oman, Upper Zakum and Al Shaheen crude oils
could not be higher than an existing offer for Murban crude in the MOC
process.

IMPLEMENTATION DATE: Platts proposes to reflect the additional crude oils in
the Dubai and Oman crude benchmarks from January 4, 2016, reflecting trading
of March loading cargoes. 

FURTHER INFORMATION: Platts will publish a more detailed FAQ document on its
website. Platts will separately announce when this FAQ is released, and
provide the web link. 

Please send all further comments, feedback and questions by November 30 to
asia_crude@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.