U ns g · Last Updated: OctOber 2010 The most up-to-date Argus Crude methodology is available on Meth O d OLO gy and specificati O ns g U ide

Last Updated: OctOber 2010

The most up-to-date Argus Crude methodology is available on www.argusmedia.com

Met

hOd

OLOg

y an

d sp

ecif

icat

iOn

s gU

ide

argUs crUde

www.argusmedia.com

Contents:Introduction 2Overview,pricingtables 2Futuresmarkets 3Forwardmarkets 3NorthSea 4CalculatingNorthSeaDated 4NorthSeaassessments 5Russian-Caspian 7Russian-Caspianassessments 7Mediterranean 10Mediterraneanassessments 10WestAfrica 11WestAfricaassessments 11MideastGulf 12MideastGulfassessments 12Asia-Pacific 14Asia-Pacificassessments 14Sudan 15SakhalinIsland 16Americas 18Americasassessments 18Updates 19

www.argusmed ia .com

19 January 2005October 2010

www.argusmedia.com�

MeThOdOlOgy And speCifiCATiOns guide

Introduction

Argus Crudeisadailymarketreportthatcoverstheinternationalcrudeoilmarket.Itisoneoftheleadingreportsservingtheoilindustryandiswidelyusedasareferenceinthepricingofcrudeoil.

Argus Crudecontainspriceassessmentsfordifferentgradesofcrudeoil.Thereportalsocontainsmarketcommentaryforthevari-ousregionalmarkets.

Argus Crude providespricesthatareusedinthird-partycontracts,riskmanagementcontracts(suchasswaps),underlyingfuturessettlementprices,internalpricetransfer,internalbenchmarking,mark-to-marketassessmentandmarketanalysis.

Theassessedcrudepricesarebasedonpricesfromtheopenspotmarketwheneverpossible.Therearemanyregionalmarketsincrudeandtheyallhaveuniquecharacteristicsbasedoncon-tractualterms,scheduling,logistics,liquidityandtransparency.Asaresult,theArgusapproachtoreportingpricesineachmarketwillvaryaccordingtotheprevailingconditionsandthenatureofeachmarket.Ingeneral,Argusreflectspricesastradedinopenmarketsandconstructspriceseriesbasedonthestructureofthemarketasestablishedbyindustryparticipants.

Argususesavarietyofmethodologicalapproachestoidentifymarketprices.UsuallyArgusidentifiespricesthroughaprocessofintelligentinterpretationbasedonbids,offers,andtransactionalinformation.Argusreducesthepossibilityofpricereportmanipula-tion,orunintendeddistortion,byapplyingintelligentinterpretationtotheweightingofinformationitreceives.Insomemarkets,Arguswillproducetradeweightedaverageswhentheindustryrequeststhemandthereisenoughmarketliquiditytojustifythem.

Argus Cruderegularlyreviewsthemethodologicalapproachesthatareappliedtoeachmarketthroughextensiveconsultationwiththeindustry.Amendmentstothemethodologywillbemadewhennec-essarytoreflectthechangesinthestructureofcrudetradingandanychangesinthepricingorcontractualnormsofeachmarket.

ThepriceassessmentsinArgus Crudearebasedonmarketsurveysthatareconductedoverthetelephoneandthroughelectronicmailexchanges.Argususesallappropriateinformationalsourcestoidentifythepricesprevailinginamarketanddoesnotrestrictitselftoonesubsectionofthemarket,suchasasingletradingplatformoranysingleinformationalchannel.ThemarketsurveysarebalancedintheirapproachandareconductedbywelltrainedspecialistswhoarepartofadedicatedteamresponsiblefortheArgus Crudereport.

Themarketsurveysofeachregionwillinvolveupto30marketparticipantscontactedbytelephone,emailorinstantmessenger.Theinformationwegatherisanalysedandverified.Theapproachismethodical,standardisedandtestedagainsttheviewsofothermarketparticipants.

Informationfromthesurveyisverifiedasbestaspossibleandar-chivedindatabases.Themethodologiesaredetailedandtranspar-

ent.Aprofessionalapproachbytrainedstaffmonitoredbyexperi-encedmanagersisacharacteristicoftheArgustradition.

AllassessmentsandformulasrefertothepriceofthecrudeonthedayofthepublishedreportandareexpressedinUSdollarsperbarrelunlessotherwisestated.Thepricesareforcontractsunderwhatevergeneraltermsandconditionsareacceptedasthestand-ardprevailinginthatparticularmarket.Allchangesareonthelastreport(oneworkingdayprevious).

Overview (Argus Crude page 1)Argusprovidesanoverviewoftheday’scrudemarketactivity,highlightingchangesinkeycrudepricesandthepricedifferencesamongthevariousregionalcrudes.Thereportdiscussesthatday’smarketactivitywithparticularreferencetothemaincrudebench-markprices.Thesummaryhasaglobalscope,allowingreaderstoquicklyunderstandthekeymarketdrivers.

Pricing tables (Argus Crude page 1)

North Sea, Russia-Caspian, Mediterranean and West Africa ThefrontpageofArgus Crudecontainsduplicateassessmentsofthecrudepricesinthevariousregionalsections.FortheNorthSea,Russian-Caspian(includingfobnetbacks)Mediterranean,andWestAfrica,pricesarepublishedasfixedpriceassessmentsandalsoshownasdifferentialstothebenchmarks.TheprimarybenchmarkintheAtlanticBasinisDated,butDateditselfisshownasadifferen-tialtotheforward21-dayNorthSeaprice(the“flat”price).

Thepricemethodologyfortheseregionsisdescribedinthevariousregionalsectionsbelow.

Mideast GulfTheMideastGulftablecontainsthepriceassessmentsmadeat4:30pmSingaporetimeforfrontmonthDubai,frontmonthOman,andtheAbuDhabicrudeMurban.

TheDubaipriceispublishedasafixedpriceassessment.TheOmanpriceispublishedasafixedpriceassessmentandisalsoshownasadifferentialtoDubaiswaps.

TheMurbanpriceispublishedasafixedpriceassessmentandalsoshownasadifferentialtotheAbuDhabiNationalOilCompany(Adnoc)OSP.

Asia-PacificTheAsia-Pacifictablecontainsthepriceassessmentsmadeat4:30pmSingaporetimeforMinas,TapisandBachHocrudes.

TheIndonesianMinascrudepriceispublishedasafixedpriceas-sessmentandasadifferentialtotheIndonesianCrudePrice(ICP).

MalaysianTapiscrudeispublishedasafixedpriceassessmentandasadifferentialtotheTapisAsiaPetroleumPriceIndex(APPI).

AustralianNorthwestShelfcondensateispublishedasafixedprice




assessmentandasadifferentialtoNorthSeaDated,andSubstituteDatedonUKholidays(seeAsia-Pacificsectionbelow).

ESPOBlendispublishedasafixedpriceassessmentandasadif-ferentialtotheDubaipriceforthemonthofloading.

SokolispublishedasafixedpriceassessmentandasadifferentialtoDubaiswapsforthemonthofloading.

US pipelineTheUSpipelinetablecontainsthepricesforLLS,MarsandtheArgus Sour Crude Index™ (ASCI™)benchmark,LLS,MarsandASCI pricesarepublishedasfixedpriceassessmentsandasdifferentialstothefrontmonthNymexWTIsettlementprice.

Canada pipelineTheCanadapipelinetablecontainsthepricesforCanadianSyn-theticandWCS,publishedasfixedpriceassessments.

Americas cargoesTheAmericascargoestablecontainsthepricesforNigerianQuaIboeandColombianVasconia,publishedasfixedpriceassess-ments.

Futures markets (Argus Crude page 2)

Argus Crudeshowsmarketinformationfromfourworldfuturesmar-ketswhichtradecrudeoil.ThesefuturesexchangesaretheLon-don-basedIntercontinentalExchange’sBrentcontract(IceBrent),theNewYorkMercantileExchange’sLightSweetCrudecontract(NymexWTI),theTokyo-basedTocomMideastGulfcrudecontractandtheDubaiMercantileExchange’sOmancontract.Argus Crudepublishesrepresentativepriceandmarketinforma-tionfromthefuturesexchangesincludingtheOpen,High,LowandSettlepricesandwherepossibletheestimatedvolumeoftrade.

Forward spreads (Argus Crude page 2)

Argus CrudeshowstheNorthSea/Dubaispreadsforthreemonthsforward,theWTI/NorthSeaspreadsforfourmonthsforwardandtheWTI/Dubaispreadsforthreemonthsforward,timestampedat4:30pmLondontime.ArgusalsoshowstheTapis/NorthSeaspreadforthreemonthsforwardandtheTapis/Dubaispreadforthreemonthsforward,timestampedat4:30Singaporetime.

Forward markets (Argus Crude page 3)

Theforwardmarketstablesshowpricesintheforwardmarketsandtheintermonthspreadsbetweenthedifferentmonthlyprices.Theyalsoshowvariousexchangeoffuturesforphysicalspricesandex-changesforswapsprices.Variousshort-termswappricetablesareshown.ThesectionalsocontainspricingcomponentsthatareusedtocalculateotherArguspriceassessments.

21-day North Sea London Singapore close The21-dayNorthSeatableforSingaporecloseshowspricesforfourmonthsforwardintheforwardNorthSeamarketat4:30pm

Singaporetime.Thismarketisthe21-dayBrentforwardmarket(withForties,OsebergorEkofisksubstitutionality).Itiscalled21-dayNorthSeainArgus Crudetodifferentiateitfromthe15-dayBrentforwardmarketthatitreplaced.Thisforwardmarkettradesinparal-leltotheIcefuturesmarketinBrentasanover-the-countermarketinBrent.

Thecontracttradesatfixedpricesandalsointheformofinter-monthspreads.ArgusassessesthepricesfortheforwardNorthSeamonthsbyapplyingtheintermonthspreadassessmentstothefirst-monthNorthSeaforwardprice.ArgususestheEFPdifferentialandthefront-monthIceBrentfuturestoassessfirst-monthforwardNorthSea,includingexpiryday,exceptforthelastthreesessionsinthelifeofthefront-monthfuturescontract.Onthesesessions,Argususessecond-monthIceBrentfuturesandthecorrespondingEFPdifferential(see Calculating North Sea Dated).

21-day North Sea London closeTheforward21-dayNorthSeaLondonclosetableduplicatestheDatedpriceandalsoshowspricesforfourmonthsforwardintheforward21-dayNorthSeamarketat4:30pmLondontime.Thismarketisthe21-dayBrentforwardmarket(withForties,OsebergorEkofisksubstitutionality).Itiscalled21-dayNorthSeainArgus Crudetodifferentiateitfromthe15-dayBrentforwardmarketthatitreplaced.ThisforwardmarkettradesinparalleltotheIcefuturesmarketinBrentasanover-the-countermarketinBrent.Aweightedaverageoftradeonthemostliquidforward21-dayNorthSeamonthisalsotheforward(orflatprice)usedinthecalculationoftheDatedassessment.

Theforward21-dayNorthSeamarkettradesatfixedpricesandalsointheformofintermonthspreads.Argusassessesthepricelevelsfortheseintermonthtradesintheforwardintermonthstableonpage4andusestheseintermonthassessmentstoconstructthefixedforwardpriceassessmentsinthe21-dayNorthSeatable.

Dubai Singapore closeArgusquotesforwardDubaiforfourmonthsforwardat4:30pmSingaporetime.AmoredetailedexplanationoftheArgusDubaimethodologycanbefoundintheMideastGulfsectionorintheArgusdocumentArgus’ Dubai Assessment Methodology(contactArgus formoredetails).

ThecomponentsusedinthecalculationoftheforwardDubaipricesaretheDubai/IceBrentEFSdifferentials,whichArgusquotesforthreemonthsforward,andtheDubaiIntermonths,whichArgusquotesforthreeperiodsforward.

Dubai London closeArgusquotestheforwardDubaipriceforfourmonthsforward.ThesepricesareassessedatLondon4:30pmandsodifferfromtheSinga-pore4:30pmassessments.

Dated to Ice Brent frontlineArgusquotespricesfortheDatedtoFrontline(DFL)marketwhichtradesthedifferencebetweentheDatedassessmentandthefrontlineIceassessment.Argusquotesthismarketforthreemonthsforward,twoquartersandoneyearforward.




WTI CushingWTIisassessedonacashmarketbasisat2:15pmHoustontime.Thesepricesreflectanintelligentassessmentofthebid/askrangeatthetimestamp.CashWTIrollsonthefourthbusinessdayfollow-ingtheexpiryofthefront-monthNymexLightSweetcrudefuturescontract.

North Sea (Argus Crude page 4)

TheNorthSeacrudemarketisoneofthemostimportantoilmar-ketsintheworld.Formanyyears,themainNorthSeacrudepricewasthepriceofBrentBlend.Thiswasthemainpricebenchmarkagainstwhichothercrudeswerevalued.Inadditiontotradingphysicalcargoes,andhavingotherphysicalgradespriceagainstit,theBrentmarketdevelopedaforwardmarketandalsoaseriesofderivativemarkets,suchasshort-termcontractfordifferencesandlong-termswaps.TheBrentmarketisalsotheunderlyingmarkettoLondon-basedIntercontinentalExchange’sIceBrentfuturescontract.

ButtherewasaproblemwiththeBrentBlendbenchmark.Produc-tionofBrentcrudeisindeclineandthenumberoffreelyavailablecargoesfortradeisdecliningevenmorerapidly.Thismeansthatthebenchmarkdidnotalwaysreflecttheconsensusviewoftheprevailingmarket.Consequently,ArgusdevelopedtheconceptofagenericNorthSeabenchmarkwhichinvolvedbroadeningthebaseofliquiditythatunderpinsthebenchmark.ThegenericNorthSeabenchmarksinArgus Crudeevolvedovertime—fromtheArgusNorthSeaIndextotheArgusNorthSeaReferencePrice—buteventuallythegenericbenchmarkbecameArgusNorthSeaDated,apricederivedfromamethodologythatinvolvedfourgrades,Brent,Forties,OsebergandEkofisk.ThispricebecameknownasDatedorNorthSeaDated.

Calculating North Sea DatedArgusNorthSeaDatedisthemarket’simpliedvaluefortheNorthSeaDatedpricereferenceobtainedbycrossreferencingforwardtrade,CFDtradeandphysicaldifferentialsforthefourBFOEcrudeswithinthe10-21dayassessmentperiod.

ThebuildingblockfromwhichtheNorthSeaDatedassessmentisderivediscalledthe“flat”priceor“forward”price.ItisthepriceforBrentcrudeforloadinginone(orpossiblytwo)monthstime.

Theforwardpriceisthepricefora21-dayNorthSeacontract(BrentwithForties,OsebergorEkofisksubstitutionality),acontractthattradesforwardinmonthlydeliveryperiodsbutwhichwillmatureintoaphysicalobligation21daysinadvanceofthecargodatenomination.Argusidentifiesthe“flat”pricefromavolumeweightedaverageof21-dayNorthSeatrade(partialandfullcargo)reportedtoArgusashavingtransactedbetween4:29and4:30pmLondontime.Intheeventoftherebeinglessthan100,000blsof21-daytradedinthetimeperiodArguswillestablishtheflatpriceasafunctionofthevalueofanexchangeoffuturesforphysicalcontract(EFP)andtheprevailingIntercontinentalExchange’sBrentfuturesprice.

IfArgusassessestheflatpriceoftheforward21-daycontractsusinganexchangeoffuturesforphysical(EFP)differentialandarepre-sentativeIceBrentfuturesvaluethentheEFPisassessedthroughoutthedayandtheIcevaluewillusuallybetheIce1minutemarker.TheIce1minutemarkerbasedontradeat4:29-4:30pmLondontimeisassumedtobearepresentativevalueforthefuturescontractun-lessArgusdeemsotherwise.ArguswilldeemitotherwiseiftheIce1minutemarkerdoesnotappeartobearepresentativevalue.WhenArgususesthetheEFPtoassesstheflatpriceArgususestheEFPdifferentialandthefront-monthIceBrentfutures.Inthelastthreesessionsinthelifeofthefront-monthfuturescontractArgususessecond-monthIceBrentfuturesandthecorrespondingEFPdifferential.

Afullrolldatecalendarisavailableonwww.argusmedia.com

TheNorthSeacrudepricesusedintheDatedmethodologyareas-sessedeitheragainsttheanticipatedvalueofDatedoragainsttheflat(forward)pricedependingonwhichformulasareunderdiscus-sionbythemarket.ThemarketoftenusestheanticipatedDatedvalueasareferencebecauseitiscommonthatcrudegradeswillpriceagainstthevalueofDatedatthedateofloading.ThemarketanticipatesthevalueofDated,forriskmanagementpurposes,bytradingcontractsfordifference(CFDs)betweentheforwardpriceandtheanticipatedvalueofDated.Arguscanconstructthemarket’sperceivedvalueofDatedseveralweeksforwardfromtheseCFDprices.ArgususestheseCFDvaluestopublishanAnticipatedDatedvaluewhichisanaverageoftheprices10-21daysforwardasanticipatedbythemarketforDated.

PricesforthefourleadinggradesofNorthSeacrude,Brent,Forties,OsebergandEkofisk,arevaluedeitheragainsttheforward(orflat)priceofBrentoragainsttheanticipatedDatedvalueatthetimeofloading.ArguswilluseoneorbothofthesesetsofdifferentialstoconstructthepricesforBrent,Forties,OsebergandEkofiskinthe10-21daysforwardperiod.Anaverageofthepricesinthe10-21daysforwardperiodforeachofthesefourcrudesisusedtodeterminethevalueofDated.TheseaveragescomprisetheBrent,Forties,OsebergandEkofiskcomponentsintheArgusDatedmeth-odology.ThelowestofthesefourvaluessetstheDatedprice.The10-21dayaverageisdeterminedbyindustryconvention.

ThismethodologicalapproachusedbyArgusisalsoutilisedbyallactiveparticipantsintheNorthSeamarkettoidentifythevalueofDated.Argusidentifiesthedifferentials,suchastheprevailingEFPprice,theCFDvaluesandthedifferentialsforthevariousgradesofcrude,throughatelephoneandelectronicmailsurvey.Awidecross-sectionofcompaniesarecontacteddailyandArgusattemptstoestablishsomeformofcontactwithallmarketparticipants.

Argusassessesthephysicalgradedifferentialforeachdayofthe10-21dayassessmentperiodforBrent,Forties,OsebergandEkofisk.Argusidentifiesthephysicalpricedifferentialsat4:30pmforeachloadingdatewhichhasmarketdepthat4:30pmandwilluseinformationgatheredthroughoutthedaytomakeinferredpriceas-sessmentsforeveryotherloadingdayofthe10-21dayassessment




period.ThelowestaverageofthedailyassessmentsforthefourcrudesintheNorthSeaDatedmethodologywillthensettheNorthSeaDatedvalue.

ArgususestheArgusDatedCalculationspreadsheet(seepageabove)toconstructtheNorthSeaDatedassessment.Thespread-sheetillustrateshowArgusassessespricesforeachoftheBrent,Forties,OsebergandEkofiskcrudegradesoneachindividualworkingdayinthe10-21dayassessmentperiod.Thespread-sheetshowshowArgustakesintoaccountmarketstructurewhentransactionsforloadingdatesinthe10-21assessmentperiodoccurinclosetimeproximity.AnillustrationofhowtheArgusNorthSeaDatedcalculationismadecanbefoundontheArguswebsiteatwww1.argusmedia.com/ArgusStaticContent//Meth/webbfo.pdf

ArguswillensurethatconfirmedmarketinformationwillbeplacedontheArgusCrudeOilBulletinBoardduringtheday,andguaran-teestodothisinatimelymannerbetween3:30pmand4:30pmLondontime.

Argususesinferredpriceassessmentsbasedoninformationgath-

eredthroughoutthedaybecausethereisinsufficientmarketactivityat4:30pmtoconstructabid/offerpriceforeverygradeforeachloadingdaywithinthepriceassessmentperiod.Argusdoesnotrigidlyusethehighestbidat4:30pmforasingleloadingdateinthe10-21assessmentperiodtosetthepricesforalldatesinthisassessmentperiod.Usinghighestbidsforasingleloadingdaymaylevertheentire10-21dayassessmentperiodinamannerthatisnotconsideredrepresentativebythemarket.NeitherdoesArgusweighttheassessmentaccordingtotransactionsatanyparticulartimeduringtheday,nordoesitaveragetransactionstoidentifyapricelevelforNorthSeaDated.TheNorthSeaDatedassessmentisthebenchmarkpriceagainstwhichothergradesofcrudeoilareassessedintheAtlanticbasin.

North Sea AssessmentsSee table below

Dated or North Sea Dated issetbythelowestoftheBrent,For-ties,OsebergandEkofiskcomponents.Consequentlyitisnotthepriceofagradeofcrudebutabenchmarkestablishedthroughamethodology.ThereforeithasnoAPIdensityorsulphurspecifica-tion.

North Sea AssessmentsGrade typical

°APItypical

Sulphur % Basis/Location Timing Cargo size

Dated fob Sullom Voe, Hound Point, Teesside, UK or Sture terminal Loading 10-�1 days ahead 600,000 bl

Brent �7.9 0.�� fob Sullom Voe Loading 10-�1 days ahead 600,000 bl

Forties �0.� 0.�6 fob Hound Point, UK Loading 10-�1 days ahead 600,000 bl

Oseberg �7.8 0.�7 fob Sture terminal Loading 10-�1 days ahead 600,000 bl

Ekofisk �7.� 0.�� fob Teesside, UK Loading 10-�1 days ahead 600,000 bl

Statfjord cif Rotterdam �9.1 0.�� cif Rotterdam Loading 10-�1 days ahead 8��,000 bl

Statfjord fob platform �9.1 0.�� fob platform Loading 10-�1 days ahead 8��,000 bl

Gullfaks cif Rotterdam �6.� 0.�6 cif Rotterdam Loading 10-�1 days ahead 8��,000 bl

Gullfaks fob platform �6.� 0.�6 fob platform Loading 10-�1 days ahead 8��,000 bl

Flotta �6 .9 0.8� fob Flotta terminal Loading 10-�1 days ahead 6�0,000 bl

Argus Dated Calculation

Today'sdate 14-May CFDs Day Date Days Brent Brent Brent Forties Forties Forties Oseberg Oseberg Oseberg Ekofisk Ekofisk Ekofisk

forward Dated Jul Dated Jul Dated Jul Dated Jul21-day Jul 67.28 related related related related related related related relatedNorth SeaCurrent CFD week

14-May 18-May 14-May 0.00 67.28 Mon 14-May 0

15-May 0.00 67.28 Tue 15-May 116-May 67.28 Wed 16-May 217-May 0.00 67.28 Thu 17-May 3 18-May 0.00 67.28 Fri 18-May 4

1st CFD week 5 21-May 25-May 6 21-May -0.80 66.48 Mon 21-May 722-May -0.80 66.48 Tue 22-May 823-May -0.80 66.48 Wed 23-May 924-May -0.80 66.48 66.48 Thu 24-May 10 -0.30 66.18 -1.45 65.83 1.25 67.73 0.50 66.9825-May -0.80 66.48 66.48 Fri 25-May 11 -0.30 66.18 -1.45 65.83 1.25 67.73 0.50 66.98

2nd CFD week 1228-May 01-Jun 1328-May -0.70 66.58 66.58 Mon 28-May 14 -0.30 66.28 -1.20 66.08 1.25 67.83 0.50 67.0829-May -0.70 66.58 66.58 Tue 29-May 15 -0.30 66.28 -1.20 66.08 1.25 67.83 0.50 67.0830-May -0.70 66.58 66.58 Wed 30-May 16 -0.30 66.28 -1.20 66.08 1.25 67.83 0.50 67.0831-May -0.70 66.58 66.58 Thu 31-May 17 -0.30 66.28 -1.20 66.08 1.25 67.83 0.85 67.4301-Jun -0.70 66.58 66.58 Fri 01-Jun 18 -0.30 66.28 -1.20 66.08 1.25 67.83 0.85 67.43

3rd CFD week 1904-Jun 08-Jun 2004-Jun -0.60 66.68 66.68 Mon 04-Jun 21 -0.30 66.38 -1.10 66.18 1.25 67.93 1.15 67.8305-Jun -0.60 66.68 Tue 05-Jun 2206-Jun -0.60 66.68 Wed 06-Jun 2307-Jun -0.60 66.68 Thu 07-Jun 2408-Jun -0.60 66.68 Fri 08-Jun 25

4th CFD week 2611-Jun 15-Jun 2711-Jun -0.50 66.78 Mon 11-Jun 28 12-Jun -0.50 66.78 Tue 12-Jun 2913-Jun -0.50 66.78 Wed 13-Jun 3014-Jun -0.50 66.78 Thu 14-Jun 3115-Jun -0.50 66.78 Fri 15-Jun 32

66.57 66.57 Dated Component 66.27 Dated Component 66.03 Dated Component 67.82 Dated Component 67.24Jul 21-day -0.71 Brent Forties Oseberg Ekofisk

Argus North Sea Dated 66.03

AnticipatedDated

Anticipated Dated average for 10 -21 days forward

www1.argusmedia.com/ArgusStaticContent//Meth/webbfo.pdf


www.argusmedia.com6


ThepricesforthevariousgradesofcrudeoilareestablishedbyaddingthecurrentDatedpricetothecurrentmarketdifferentialforthatgradeofcrude.Argusassessesthegradedifferentialsduringthecourseofthedaywithacutofftimeat4:30pmLondontime.For-mulasforDated-relatedcrudesareanindicationofthedifferentialtoDatedaroundbillofladingassessedasachievableonthedayofthereport.Argusdoesnotconsidership-to-shiptransferswhenassessingthegradedifferentials.

ArgusalsopublishesthecomponentvaluesforBrent,Forties,OsebergandEkofiskthatareusedtocalculatethepriceofDated.ItisthelowestofthesefourcomponentsthatsetsthepriceofDated.Thecomponentvaluesforthesecrudesarenotnecessarilythesameasthepricesforthesecrudes,asthegradepricesarecal-culatedbyaddingthemarketpremiumforthegradetothecurrentDatedvalue.

TheBrent assessmentisthepriceofBrentBlend,aNorthSeacrude.ThevalueofBrentiscalculatedbyapplyingthemarketdif-ferentialofBrenttothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

TheFortiesassessmentisthepriceofFortiesBlend,aNorthSeacrude.ThevalueofFortiesiscalculatedbyapplyingthemarketdif-ferentialofFortiestothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

TheOsebergassessmentisthepriceofOseberg,aNorthSeacrude.ThevalueofOsebergiscalculatedbyaaplyingthemarketdifferentialofOsebergtothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

TheEkofiskassessmentisthepriceofEkofisk,aNorthSeacrude.ThevalueofEkofiskiscalculatedbyapplyingthemarketdifferentialofEkofisktothecurrentDatedvalue.Theprevailingmarketdifferen-tialisalsopublishedseparately.

TheStatfjord cif RotterdamassessmentisthepriceofStatfjord,aNorthSeacrude.ThevalueofStatfjordcifRotterdamiscalcu-latedbyapplyingthemarketdifferentialofStatfjordcifRotterdamtothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.Statfjordisanoffshorecrudeloadedattheplatformratherthanatanonshoreterminal.

TheStatfjord fob platform assessmentisthepriceofStatfjord,aNorthSeacrude.ThevalueofStatfjordfobplatformiscalculatedbyapplyingthemarketdifferentialofStatfjordfobplatformtothecur-rentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.Nomodificationsaremadetotheprevailingpremiumordiscountinrespectoffreightarrangements.

TheGullfaks cif RotterdamassessmentisthepriceofGullfaks,aNorthSeacrude.ThevalueofGullfakscifRotterdamiscalcu-latedbyapplyingthemarketdifferentialofGullfakscifRotterdamtothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.Gullfaksisanoffshorecrudeloadedattheplatformratherthanatanonshoreterminal.

TheGullfaks fob platform assessmentisthepriceofGullfaks,aNorthSeacrude.ThevalueofGullfaksfobplatformiscalculatedbyapplyingthemarketdifferentialofGullfaksfobplatformtothecur-rentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.Nomodificationsaremadetotheprevailingpremiumordiscountinrespectoffreightarrangements.

TheFlottaassessmentisthepriceofFlotta,aNorthSeacrude.ThevalueofFlottaiscalculatedbyapplyingthemarketdifferentialofFlottatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

North Sea EFPArgusquotestheNorthSeaEFP,ortheexchangeoffuturesforphysi-calprice,whichisthetradeddifferentialbetweentheIceBrentfuturescontractandtheequivalentmonth21-dayNorthSeaforwardprice.

Ice BwaveArgusalsoshowstheBwavepriceforthreemonthsforward.ThisisaweightedaverageoftradeontheIceBrentcontractonthepreviousworkingdayascalculatedbytheIntercontinentalExchange.ItisusedasacomponentintheSaudiAramcoformulaforcrudesalesintoEurope.ArgusshowstheSaudiFormulaBasepricewhichisderivedfromtheBwavethatistheunderlyingpriceinitssalesformulatoEuropeancustomers.ThesameformulaisusedbyKuwaitandIraninsalestoEuropeancustomers.

Ice minute markersArgusshowstheIce1minutemarkerpricewhichisaweightedav-erageoftradeontheIceBrentcontractbetween4:29and4:30pmfortwomonthsforwardascalculatedbytheIntercontinentalEx-change.

Dated CFDsArgusquotespricesforNorthSeaDatedCFDs,timestampedat12:00pmandat4:30pmLondontime.Thesearecontractsfordiffer-ence(orshort-termswaps)forDatedagainstforward21-dayNorthSeacontracts.TheseNorthSeaDatedCFDpricesareexpressedasdifferentialstoforward21-dayNorthSeaforfourweeklyperiodsforward.

IntermonthsTheforward21-dayNorthSeamarketrarelytradesatfixedprices.In-stead,mosttradeisintheformofintermonthtrades.Argusassessesthepricelevelsfortheseintermonthtradesintheforwardinter-monthstableandusestheseintermonthassessmentstoconstructthefixedforwardpriceassessmentsinthe21-dayNorthSeatableonpage3.

North Sea calculationsTheNorthSeacalculationstableshowshowthecomponentpartsofDatedareusedtoderivethebenchmarkprice.

North Sea basis (flat price)isaweightedaverageofforward21-dayNorthSeatradeintheminuteleadingupto4:30pmLondontime.Intheabsenceofreportedtrade,theIceBrentminutemarkerandanEFPareused.


www.argusmedia.com7


Anticipated DatedwaspreviouslycalledArgusSyntheticBFO.Itisanaverageoftheprices10-21daysforwardthatareanticipatedbythemarketforDatedasderivedfromtheCFDmarket.

TheBrent, Forties, Oseberg and Ekofisk componentsaretheaverageprices10-21daysforwardusingtheArgusDatedmethodology.ThelowestofthesecomponentssetsArgusDated(see Calculating North Sea Dated).

Argus alternative Dated illustrationsArguspublishesanumberofalternativeDatedillustrations:Argus Dated Average(anaverageoftheBrent,Forties,OsebergandEkofiskcompenents),Argus Dated BFOE (currentlyequivalenttoArgusNorthSeaDated),(anaverageoftheBrent,Forties,OsebergandEkofiskcompenents),Argus Dated BFO (setbythelowestpricedoftheBrent,FortiesandOserbergcomponents),andArgus Dated FOE (setbythelowestpricedoftheForties,OsebergandEkofiskcomponents).

Argus North Sea Reference PriceArgusalsopublishesasecondNorthSeagenericpricecalledtheArgus North Sea Reference Price.ThiswasaprecursortoArgusDated.TheArgusNorthSeaReferencePriceusesaforwardcurvesimilartoAnticipatedDatedcalledSyntheticBrent.

TheArgusNorthSeaReferencePriceisbasedonaweightedaverageofadjustedNorthSeacrudeassessments.TheNorthSeacrudeassessmentsarestandardisedusingtheArgusSyntheticBrentassessment,whichiscalculatedfromthemarketrelevantArgus21-dayNorthSeapriceadjustedbytheaveragevalueofthesecondandthirdweekCFD(contractfordifferences)valueaspublishedinArgus Crude.Thisaverageisweightedbetweenthesecondandthirdweekaccordingtothenumberofworkingdaysinthesecondandthirdweeksthatfall15to19daysaheadofthecurrentdate.TheweightedaverageoftheNorthSeacrudeassess-ments(Forties,Flotta,Ekofisk,StatfjordandOsebergprices)usedintheArgusNorthSeaReferencePriceiscomposedofthefollow-ingratio:

TheassessmentsforthesecrudesarecalculatedbyappyingthedifferentialofthemarketvalueofthecrudeagainsttheArgusSyn-theticBrentprice.

TheArgusSynthetic Brentassessmentiscalculatedfromtherel-evantArgus21-dayNorthSeapriceadjustedbytheaveragevalueofthesecondandthirdweekCFD(contractfordifference)valueaspublishedinArgus Crude.ItisacomponentoftheArgusNorthSeaReferencePrice.

Russia-Caspian (Argus Crude page 6)ArgusassessesthepriceforavarietyofRussianandCaspiancrudestransportedbyshiptoRotterdamandAugusta,Italy,andbypipelinetocentralEurope.Argusalsocalculatesnetbackvaluestotheloadingterminalsforseveralcrudes.

Argususesanintelligentinterpretationofprevailingmarketconditionstoestablishtheassessmentvalues.

RussianandCaspiancrudepricesarecalculatedusingthedifferen-tialstothecurrentDatedprice.ThemethodologybehindtheDatedassessmentcanbefoundintheNorthSeasectionandonthewww.argusmedia.com.Thegradedifferentialsareassessedduringthecourseofthedaywithacutoffat5:30pmLondontime.ThecurrentdifferentialsandcurrentDatedassessmentsareaddedtogethertogeneratethegradeassessment.

TheRussianandCaspiancifpriceassessmentsaremadebyatelephoneandelectronicmailsurvey.Across-sectionofbuyersandsellersareconsultedandthemarketinformationcross-referencedwithactivemarketparticipants.Aconsensusvalueregardingthecrudegradedifferentialisthendeterminedandusedtogeneratethepriceofthecrude.Urals(RussianExportBlend)cifassessmentsassumeanEU-stand-arddouble-hulledvessel.

Thetimingofthepriceassessmentsvariesaccordingtoquotation.ChecktheAssessmentstableonpage8foreachassessment’stimingperiod.

TheDruzhbapricesareassessedforRussianexportblendatfirstpointofexportfordeliveryatvariouslocationsalongtheDruzhba(Friendship)pipeline.Thepricesarefor30,000tonnetranchesandforbalanceofthemonth.ThemarketsurveyisconductedamongRussianproducers,shippersandend-userrefineries.Intheeventthatthemarkettakesonretrospectivepricing,theassessmentpriceistheperceivedvalueofthedifferentialthatwilleventuallybeagreedbetweenthesellerandbuyerforthemonth’soil.

Russian-Caspian AssessmentsSee table on page 8

TheUrals NWEassessmentisthepriceofUrals,orRussianexportblendcrude.ThevalueofUralsNWEiscalculatedbyapplyingthemarketdifferentialofUralscifnorthwestEuropetotheDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

TheUrals fob PrimorsknetbackiscalculatedfromthepriceofUralsNWE,nettedbacktoPrimorsk.TheUralsPrimorskfobnet-backisderivedfromtheUralscifnorthwestEuropeassessmentnet-tedbackforfreight,insuranceandice/towagefees.Thefreightcostisfor100,000tvesselsandisassesseddailybasedonspotfreightratesfromtheArgus Freight report.Theice/towagefeesarecalcu-latedinroubles/GTandconvertedintodollars/bl.Insurancecostsarecalculatedasapercentageoftheoutrightcifprice.Thenetbackdoesnotincludetransportationlosses,ballast,portdemurrage,commissions,bankloanexpensesormarketstructure.Thenetback

Ratio Approx %Forties �� 6.��

Flotta � �.�6

Ekofisk 1� 1�.79

Oseberg 1� 1�.79

Statfjord �� 6.8�


www.argusmedia.com8


alsodoesnotincludetheadditionalfixedratedifferentialaddedforvoyageswithintheBalticandNorthSeaSulphurOxideEmis-sionsControlArea(SECA)asmentionedbyWorldscale.Thereisa“Rotterdamcharge”of$1.01/taddedtothefreightcost,assumingstandardcargosizesof100,000tandvesselswithgrosstonnageof60,000GT.Theconversionfactorfortonnesintobarrelsis7.26.

TheUrals Med 80,000t assessmentisthepriceofUrals,orRus-sianexportblendcrude.ThevalueofUralsMediscalculatedbyapplyingthemarketdifferentialofUralscifAugustatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.TheUralscifAugustaassessmentreflectsthemarketpriceof80,000tcargoes.UralsMediterraneanpricesare“Novoros-siyskquality”,typically31.8°APIand1.3pcsulphur.

TheUrals 80,000t fob Novorossiysk netbackiscalculatedfromthepriceofUralsMed,nettedbacktoNovorossiysk.TheUralsNovorossiyskfobnetbackisderivedfromtheUralscifMediterraneanassessmentnettedbackforfreight,insuranceanddemurragecosts.Thefreightcostisfor80,000tvesselsandisassesseddailybasedonspotfreightratesfromtheArgus Freightreport.Insurancecostsarecalculatedasapercentageoftheoutrightcifprice.Demurragecostsareassesseddailyandmultipliedbythenumberofdaysdelayinbothdirections,northboundandsouthbound,intheTurkishStraitsabovetwodays.Thenetbackdoesnotincludetransportationlosses,ballast,portdemurrage,commissions,bankloanexpensesormarketstructure.Theconversionfactorfortonnesintobarrelsis7.26.

TheUrals Med 135,000tassessmentisthepriceofUrals,orRus-sianexportblendcrude.ThevalueofUralsMediscalculatedbyapplyingthemarketdifferentialofUralscifAugustatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.TheUralscifAugustaassessmentreflectsthemarketpriceof135,000tcargoes.UralsMediterraneanpricesare“Novo-

rossiyskquality”,typically31.8°APIand1.3pcsulphur.

TheUrals 135,000t fob NovorossiysknetbackiscalculatedfromthepriceofUralsMed,nettedbacktoNovorossiysk.TheUralsNovorossiyskfobnetbackisderivedfromtheUralscifMediterra-neanassessmentnettedbackforfreight,insuranceanddemurragecosts.Thefreightcostisfor135,000tvesselsandisassesseddailybasedonspotfreightratesfromtheArgus Freightreport.Insur-ancecostsarecalculatedasapercentageoftheoutrightcifprice.Demurragecostsareassesseddailyandmultipliedbythenumberofdaysdelayinbothdirections,northboundandsouthbound,intheTurkishStraitsabovetwodays.Thenetbackdoesnotincludetransportationlosses,ballast,portdemurrage,commissions,bankloanexpensesormarketstructure.Theconversionfactorfortonnesintobarrelsis7.26.

TheSiberian LightassessmentisthepriceofSiberianLight,aRussianexportblend.ThevalueofSiberianLightiscalculatedbyapplyingthemarketdifferentialofSiberianLightcifAugustatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopub-lishedseparately.

TheCPC BlendassessmentisthepriceofCPCBlend,aKazakhexportblend.ThevalueofCPCBlendiscalculatedbyapplyingthemarketdifferentialofCPCBlendcifAugustatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

TheCPC TerminalnetbackiscalculatedfromthepriceofCPCBlend,nettedbacktotheCPCterminalnearNovorossiysk,adjustedforothercosts.TheCPCTerminalfobnetbackisderivedfromtheCPCBlendcifAugustaassessmentnettedbackforfreight,insur-anceanddemurragecosts.Thefreightcostisfor135,000tvesselsandisassesseddailybasedonspotfreightratesfromtheArgus Freightreport.Insurancecostsarecalculatedasapercentageoftheoutrightcifprice.Demurragecostsareassesseddailyandmul-

Russian-Caspian AssessmentsGrade typical

°APItypical

Sulphur % Basis/Location Timing Cargo size

Urals NWE �1.8 1.�0 cif northwest Europe Loading 10-�1 days ahead 100,000t

Urals fob Primorsk �1.8 1.�0 fob Primorsk, Baltic 100,000t

Urals Med 80,000t �1.8 1.�0 cif Augusta, Italy Loading �-�0 days ahead 80,000t

Urals fob 80,000t Novorossiysk �1.8 1.�0 fob Novorossiysk, Black Sea 80,000t

Urals Med 1��,000t �1.8 1.�0 cif Augusta, Italy Loading �-�0 days ahead 1��,000t

Urals fob 1��,000t Novorossiysk �1.8 1.�0 fob Novorossiysk, Black Sea 1��,000t

Siberian Light ��.� 0.�8 cif Augusta, Italy Loading �-�0 days ahead 7�,000t

CPC Blend �� 0.�� cif Augusta, Italy Loading 10-�0 days ahead 80,000t -1��,000t

CPC Terminal �� 0.�� fob CPC terminal, near Novorossiysk 1��,000t

Kumkol �� 0.�0 cif Augusta, Italy Loading 10-�0 days ahead �0,000t - 100,000t

Azeri Light �� 0.16 cif Augusta, Italy Loading 10-�� days ahead 80,000t-1��,000t

Azeri Light �� 0.1� fob Supsa 80,000t

BTC �6 0.1� cif Augusta, Italy Loading 10-�� days ahead 80,000t-1��,000t

BTC �6 0.1� fob Ceyhan Loading 10-�� days ahead 80,000t

Tengiz �6.� 0.�� cif Augusta, Italy Loading 10-�0 days ahead 80,000t

Tengiz �6.� 0.�� fob Odessa 80,000t

Druzhba Czech Republic �1.7 1.�0 fit Budkovce, Slovakia (for Czech delivery) Delivered during balance of current month �0,000t tranche

Druzhba Slovakia �1.7 1.�0 fit Budkovce, Slovakia (for Slovak delivery) Delivered during balance of current month �0,000t tranche

Druzhba Hungary �1.7 1.�0 fit Fenyeslitke, Hungary (for Hungarian delivery) Delivered during balance of current month �0,000t tranche

Druzhba Poland �1.7 1.�0 fit Adamowo, Poland (for Polish delivery) Delivered during balance of current month �0,000t tranche

Druzhba Germany �1.7 1.�0 fit Adamowo, Poland (for German delivery) Delivered during balance of current month �0,000t tranche


www.argusmedia.com9


tipliedbythenumberofdaysdelayinbothdirections,northboundandsouthbound,intheTurkishStraitsabovetwodays.Thenetbackdoesnotincludetransportationlosses,ballast,portdemurrage,commissions,bankloanexpensesormarketstructure.ThereisaCPCTerminaldiscountof$1.42/tonthefreightcost,whichisregu-larlyadjusted.Theconversionfactorfortonnesintobarrelsis7.81.

TheKumkol assessmentisthepriceofKumkol,aKazakhcrude.ThevalueofKumkoliscalculatedbyapplyingthemarketdifferentialofKumkolcifAugustatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

TheAzeri LightassessmentisthepriceofAzeriLight,acrudefromAzerbaijan.ThevalueofAzeriLightiscalculatedbyapplyingthemarketdifferentialofAzeriLightcifAugustatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

TheAzeri LightnetbackiscalculatedfromthepriceofAzeriLight,nettedbacktoSupsa,adjustedforothercosts.TheAzeriLightfobnetbackisderivedfromtheAzeriLightcifAugustaassessmentnettedbackforfreight,insuranceanddemurragecosts.Thefreightcostisfor80,000tvesselsandisassesseddailybasedonspotfreightratesfromtheArgus Freightreport.Insurancecostsarecal-culatedasapercentageoftheoutrightcifprice.DemurragecostsareassesseddailyandmultipliedbythenumberofdaysdelayintheTurkishStraitsabovetwodays.Thenetbackdoesnotincludetransportationlosses,ballast,portdemurrage,commissions,bankloanexpensesormarketstructure.Theconversionfactorfortonnesintobarrelsis7.41.

TheBTCassessmentisthepriceofBTCorigincrude.BTCistheBaku-Tbilisi-CeyhanpipelinewhichhasitsterminalatCeyhan,Turkey.ThevalueoftheBTCcrudeiscalculatedbyapplyingthemarketdif-ferentialofBTCcifAugustatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

TheBTC fob Ceyhan quotationisanassessmentbutintheabsenceofstrongtradingindicationswillbebasedonaBTCfobnetbackderivedfromtheBTCcifAugustaassessmentnettedbackforfreightandinsurancecosts.Thefreightcostwillbefor80,000tvesselsandwillbeassesseddailybasedonspotfreightratesfromtheArgus Freight report.Insurancecostsarecalculatedasapercentageoftheoutrightcifprice.Theconversionfactorfortonnesintobarrelsis7.45.

TheTengizassessmentisthepriceofTengiz,aKazakhcrude.ThevalueofTengiziscalculatedbyapplyingthemarketdifferentialofTengizcifAugustatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

TheTengiznetbackiscalculatedfromthepriceofTengiz,nettedbacktoOdessa,adjustedforothercosts.TheOdessafobnetbackisderivedfromtheTengizcifAugustaassessmentnettedbackforfreight,insuranceanddemurragecosts.Thefreightcostisfor80,000tvesselsandisassesseddailybasedonspotfreightratesfromtheArgus Freightreport.Insurancecostsarecalculatedasapercentageoftheoutrightcifprice.Demurragecostsareassessed

dailyandmultipliedbythenumberofdaysdelayinbothdirections,northboundandsouthbound,intheTurkishStraitsabovetwodays.Thenetbackdoesnotincludetransportationlosses,ballast,portdemurrage,commissions,bankloanexpensesormarketstructure.Theconversionfactorfortonnesintobarrelsis7.98.

TheDruzhba Czech RepublicassessmentisthepriceofRussianExportBlendfitBudkovcefordeliverytotheCzechRepublicalongtheDruzhbapipelineatfirstpointofexport.ThevalueofDruzhbaCzechRepubliciscalculatedbyapplyingthemarketdifferentialofDruzhbaCzechRepublictothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

MonthlyDruzhbaprices:TermpricesforcrudeontheDruzhbapipelinearederivedretrospectivelyfrommonthlyformulapricesagreedbetweenbuyersandsellerstodeterminethedifferentialtoNorthSeaDated.Themonthlydifferentialsemergeatthebeginningofthefollowingmonth.SotheJulydifferentialstoDatedforDruzhbaappearatthebeginningofAugust.ArgusassessestheaveragemonthlydifferentialtoDatedfordifferentlocationsontheDruzhbapipeline.ThesearecombinedwithanaverageofDatedvaluesovertheappropriatemonthtogiveanoutrightprice.

TheDruzhba Slovakia assessmentisthepriceofRussianExportBlendfitBudkovcefordeliverytoSlovakiaalongtheDruzhbapipelineatfirstpointofexport.ThevalueofDruzhbaSlovakiaiscalculatedbyapplyingthemarketdifferentialofDruzhbaSlovakiatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.


TheDruzhba Hungary assessmentisthepriceofRussianExportBlendfitFenyeslitkefordeliverytoHungaryalongtheDruzhbapipelineatfirstpointofexport.ThevalueofDruzhbaHungaryiscalculatedbyapplyingthemarketdifferentialofDruzhbaHungarytothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.



www.argusmedia.com10


TheDruzhba Poland assessmentisthepriceofRussianExportBlendfitAdamowofordeliverytoPolandalongtheDruzhbapipelineatfirstpointofexport.ThevalueofDruzhbaPolandiscalculatedbyapplyingthemarketdifferentialofDruzhbaPolandtothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.


TheDruzhba Germany assessmentisthepriceofRussianexportblendfitAdamowofordeliverytoGermanyalongtheDruzhbapipelineatfirstpointofexport.ThevalueofDruzhbaGermanyiscalculatedbyapplyingthemarketdifferentialofDruzhbaGermanytothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.MonthlyDruzhbaprices:TermpricesforcrudeontheDruzhbapipelinearederivedretrospectivelyfrommonthlyformulapricesagreedbetweenbuyersandsellerstodeterminethedifferentialtoNorthSeaDated.Themonthlydifferentialsemergeatthebeginningofthefollowingmonth.SotheJulydifferentialstoDatedforDruzhbaappearatthebeginningofAugust.ArgusassessestheaveragemonthlydifferentialtoDatedfordifferentlocationsontheDruzhbapipeline.ThesearecombinedwithanaverageofDatedvaluesovertheappropriatemonthtogiveanoutrightprice.

Russia-Caspian retrospective assessmentsTheseassessmentsarebasedonthepublicationdate’sNorthSeaDatedaddedtotheaverageofthefobdifferentialspublishedovertheretrospectiveperiodduringwhichcargoesforloadingthatdayarelikelytohavetraded.Theygivetheapproximatepricethatacargoloadingonthedayofpublicationcouldbeexpectedtoachieve.TheUrals fob Primorsk retrospectiveassessmentisbasedonthepublicationdate’sNorthSeaDatedaddedtotheaverageoftheUralsfobPrimorskdifferentialsforworkingdaysina10-21dayperiodbeforethepublicationdate.

TheUrals fob Novorossiysk (80kt) retrospectiveassessmentisbasedonthepublicationdate’sNorthSeaDatedaddedtotheaver-ageoftheUralsfobNovorossiyskdifferentialsforworkingdaysina5-20dayperiodbeforethepublicationdate.

TheCPC Blend fob CPC Terminal retrospective assessmentisbasedonthepublicationdate’sNorthSeaDatedaddedtotheaverageoftheCPCBlendfobCPCTerminaldifferentialsforworkingdaysina10-30dayperiodbeforethepublicationdate.

Cif basis Singapore assessments TheUrals Black Sea cif basis Singaporeassessmentiscal-culatedbyaddingafreightcomponenttotheUralsfob(135kt)

Novorossiysknetback.Thefreightcostisfor135,000tvesselsandisassesseddailybasedonspotMed/BlackSea–EastfreightratesfromtheArgus Freight report.

TheBTC Blend cif basis SingaporeassessmentiscalculatedbyaddingafreightcomponenttotheBTCfobCeyhanassessment.Thefreightcostisfor135,000tvesselsandisassesseddailybasedonspotMed/BlackSea–EastfreightratesfromtheArgus Freight report.

Mediterranean (Argus Crude page 8)

ArgusassessesavarietyofsweetandsourgradesofcrudeintheMediterranean.Thecrudeschosenarenotonlythoseforwhichthereisopenspotmarketactivitybutalsothosethatallowpricecomparisonsonsulphurandotherspecifications.Themethodolo-giesforeachassessmentarekeptunderregularreview.Intheabsenceofopenmarketactivity,Arguswilluseacomparativevalueapproach,estimatingthemarketvalueofthecrudeinlinewithothercrudesthatdohavemorepricevisibility.Thepublishedpricesarenotmeanttobeofficialsellingprices.Officialsellingpriceswillalsobepublishedin Argus Crudeandclearlylabelledassuch.MediterraneancrudepricesarecalculatedusingthedifferentialstothecurrentNorthSeaDatedprice.ThemethodologybehindtheDatedassessmentcanbefoundintheNorthSeasectionandonwww.argusmedia.com.Thegradedifferentialsareassessedduringthecourseofthedaywithacutofftimeat5:30pmLondontime.ThecurrentdifferentialsandcurrentDatedassessmentsareaddedtogethertogeneratethegradeassessment.

Thetimingofthepriceassessmentsisforanaveragepriceintheperiod10–25daysaheadexceptforKirkukwhichisforanaverageof5-15daysahead.

TheMediterraneanfobpriceassessmentsaremadebyatelephoneandelectronicmailsurvey.Across-sectionofbuyersandsellersareconsultedandthemarketinformationcross-referencedwithactivemar-ketparticipants.Aconsensusvalueregardingthecrudegradedifferen-tialisthendeterminedandusedtogeneratethepriceofthecrude.

Mediterranean AssessmentsSee table below

Mediterranean Assessments

Grade typical °API

typical Sulphur

%

Basis/Location Timing Cargo size

Es Sider �6.� 0.�9 fob Libya Loading 10-�� days ahead 80,000t - 1�0,000t

Syrian Light �8.0 0.76 fob Syria Loading 10-�� days ahead 80,000t - 1�0,000t

Iran Heavy �0.7 1.80 fob Sidi Kerir Loading 10-�� days ahead 80,000t - 1�0,000t

Iran Light ��.7 1.�0 fob Sidi Kerir Loading 10-�� days ahead 80,000t - 1�0,000t

Suez Blend �0.� 1.6� fob Ras Shukeir Loading 10-�� days ahead 80,000t - 1�0,000t

Saharan Blend �6.0 0.10 fob Arzew Loading 1�-�� days ahead 80,000t - 1�0,000t

Zarzaitine ��.8 0.06 fob La Skhirra Loading 10-�� days ahead 80,000t - 1�0,000t

Basrah Light �0.0 �.00 fob Sidi Kerir Loading 10-�� days ahead 80,000t - 1�0,000t

Kirkuk �6 �.00 fob Ceyhan Loading �-1� days ahead 80,000t - 1�0,000t




ThevalueofEs Sider,aLibyancrude,fobLibya,iscalculatedbyapplyingthemarketdifferentialofEsSidertothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofSyrian Light,aSyriancrude,fobSyria,iscalculatedbyapplyingthemarketdifferentialofSyrianLighttothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofIran Heavy,Iraniancrude,fobSidiKerir,,iscalculatedbyapplyingthemarketdifferentialofEsSidertothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

Thevalueof Iran Light,anIraniancrude,fobSidiKerir,isassessedinrelationtootherquotedcrudepricesintheMediterranean.TheprevailingmarketdifferentialtotheDatedvalueisalsopublishedseparately.

ThevalueofSuez Blend,anEgyptiancrude,fobRasShukeir,isassessedinrelationtootherquotedcrudepricesintheMediter-ranean.TheprevailingmarketdifferentialtotheDatedvalueisalsopublishedseparately.

ThevalueofSaharan Blend,anAlgeriancrude,fobArzew,iscalculatedbyapplyingthemarketdifferentialofSaharanBlendtothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

Thevalueof Zarzaitine,anAlgeriancrude,fobTunisia,iscalculatedbyapplyingthemarketdifferentialofZarzaitinetothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofBasrah Light,anIraqicrude,fobSidiKerir,iscalcu-latedbyapplyingthemarketdifferentialofBasrahLighttothecur-rentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofKirkuk,anIraqicrude,fobCeyhan,isassessedinrelationtootherquotedcrudepricesintheMediterranean.TheprevailingmarketdifferentialtotheDatedvalueisalsopublishedseparately.

Official formula pricesArgusalsopublishesofficialformulapricesforcrudefromAlgeria,Syria,LibyaandEgypt.TheseareexpressedasdifferentialstoDatedorUralsintheMediterraneanforagivenloadingmonthandaresetbynationaloilcompanies.

West Africa (Argus Crude page 9)

ArgusassessesavarietyofwestAfricancrudes.Thecrudeschosenarenotonlythoseforwhichthereisopenspotmarketactivitybutalsothosethatallowpricecomparisonsamongthevariousgrades.Themethodologiesforeachassessmentarekeptunderregularreview.Intheabsenceofopenmarketactivity,Arguswilluseacom-parativevalueapproach,estimatingthemarketvalueofthecrudeinlinewithothercrudesthathavemorepricevisibility.Thepublished

pricesarenotmeanttobeofficialsellingprices.Officialsellingpriceswillalsobepublishedin Argus Crudeandclearlylabelledassuch.

WestAfricancrudepricesarecalculatedusingthedifferentialstothecurrentNorthSeaDatedprice.ThemethodologybehindtheDatedassessmentcanbefoundintheNorthSeasectionandonwww.argusmedia.com.Thegradedifferentialsareassessedduringthecourseofthedaywithacutofftimeat5:30pmLondontime.ThecurrentdifferentialsandcurrentDatedassessmentsareaddedtogethertogeneratethegradeassessment.Thetimingofthepriceassessmentsisforanaveragepriceintheperiod20-45daysahead.

ThewestAfricanpriceassessmentsaremadebyatelephoneandelectronicmailsurvey.Across-sectionofbuyersandsellersareconsultedandthemarketinformationcross-referencedwithactivemarketparticipants.Aconsensusvalueregardingthecrudegradedifferentialisthendeterminedandusedtogeneratethepriceofthecrude.

TheformulapricepublishedrepresentsthepremiumordiscounttoDatedaroundbillofladingassessedasachievableinthecurrentmarketandusedwhenestablishingthequotation,exceptforNigeriancargoeswhichareassessedfivedaysafterthebilloflad-ing(thesamepricingbasisusedbyNNPC).

West Africa AssessmentsSee table below

ThevalueofBonny Light,aNigeriancrude,iscalculatedbyapply-ingthemarketdifferentialofBonnyLighttothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofQua Iboe,aNigeriancrude,iscalculatedbyapplyingthemarketdifferentialofQuaIboetothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

West Africa Assessments

Grade typical °API

typicalSulphur

%Basis/Location Timing Cargo size

Bonny Light ��.� 0.1� fob Nigeria Loading �0-�� days ahead 9�0,000 bl

Qua Iboe �6.6 0.1� fob Nigeria Loading �0-�� days ahead 9�0,000 bl

Brass River �6.� 0.1� fob Nigeria Loading �0-�� days ahead 9�0,000 bl

Forcados �0 0.1� fob Nigeria Loading �0-�� days ahead 9�0,000 bl

Escravos �� 0.1� fob Nigeria Loading �0-�� days ahead 9�0,000 bl

Agbami �7.� 0.0� fob Nigeria Loading �0-�� days ahead 9�0,000 bl

Amenam �0.8 0.9� fob Nigeria Loading �0-�� days ahead 9�0,000 bl

Bonga �9.11 0.�9� fob Nigeria Loading �0-�� days ahead 9�0,000 bl

Erha ��.7 0.1798 fob Nigeria Loading �0-�� days ahead 9�0,000 bl

Cabinda ��.� 0.1� fob Angola Loading �0-�� days ahead 9�0,000 bl

Girassol �1 0.�� fob Angola Loading �0-�� days ahead 9�0,000 bl

Hungo �7.� 0.6� fob Angola Loading �0-�� days ahead 9�0,000 bl

Nemba �8.7 0.19 fob Angola Loading �0-�� days ahead 9�0,000 bl

Dalia ��.7 0.�9 fob Angola Loading �0-�� days ahead 9�0,000 bl

Kissanje �0.7 0.�6 fob Angola Loading �0-�� days ahead 9�0,000 bl

Zafiro �9.� 0.�6fob offshore Equatorial

GuineaLoading �0-�� days ahead 9�0,000 bl


www.argusmedia.com1�


ThevalueofBrass River,aNigeriancrude,iscalculatedbyapply-ingthemarketdifferentialofBrassRivertothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofForcados, aNigeriancrude, iscalculatedbyapplyingthemarketdifferentialofForcadostothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofEscravos,aNigeriancrude,iscalculatedbyapplyingthemarketdifferentialofEscravostotheDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofAgbami,aNigeriancrude,iscalculatedbyapplyingthemarketdifferentialofAgbamitothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofAmenam,aNigeriancrude,iscalculatedbyapplyingthemarketdifferentialofAmenamtothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofBonga,aNigeriancrude,iscalculatedbyapplyingthemarketdifferentialofBongatothecurrentDatedvalue.Theprevail-ingmarketdifferentialisalsopublishedseparately.ThevalueofErha,aNigeriancrude,iscalculatedbyapplyingthemarketdifferentialofErhatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofCabinda,anAngolancrude,iscalculatedbyapplyingthemarketdifferentialofCabindatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofGirassol,anAngolancrude,iscalculatedbyapplyingthemarketdifferentialofGirassoltothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofHungo,anAngolancrude,iscalculatedbyapplyingthemarketdifferentialofHungotothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofNemba,anAngolancrude,iscalculatedbyapplyingthemarketdifferentialofNembatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofDalia,anAngolancrude,iscalculatedbyapplyingthemarketdifferentialofDaliatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofKissanje,anAngolancrude,iscalculatedbyapply-ingthemarketdifferentialofDaliatothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

ThevalueofZafiro,acrudefromEquatorialGuinea,iscalculatedbyapplyingthemarketdifferentialofZafirotothecurrentDatedvalue.Theprevailingmarketdifferentialisalsopublishedseparately.

Nigerian official formula pricesArgusalsopublishesofficialformulapricesforcrudefromNigeria.

TheseareexpressedasdifferentialstoDatedforagivenloadingmonthandaresetbyNigeria’snationaloilcompanyNNPC.

Mideast Gulf (Argus Crude page 10)

TheDubaipriceisaleadingbenchmarkforcrudepricing.ItisthebenchmarkformostofthesourcrudeexportedfromtheGulftotheeastofSuezmarkets.MiddleEastcrudeoilsoldtotheeasternmar-ketsistraditionallyvaluedagainstthepriceofDubaioranaverageofthepricesofDubaiandOman.ThisisbecauseDubaiisoneofthefewMiddleEasterncrudestobesoldwithoutextensivedestina-tionclausesandisavailabletoafreelytradedopenspotmarket.Dubai’sproduction,andthereforeitsmarketliquidity,hasbeenindeclineformanyyears.FewfullcargoesofDubaicrudearenowtradedontheopenspotmarketwhichmeanspricediscoveryofthecrudeneedstoreflectothertransparentandliquidmarketindica-tors.ArgusDubaipricesareidentifiedthroughaswapsandspreadsmethodology.

Mideast Gulf AssessmentsSee table below

DubaiArgusassessesthepriceofDubaiinthesamewaythatthemarketassessesthevalueofDubai.CompaniesthattradetheDubaimarketconverttheirDubaipriceexposureintoaBrentpriceexposure.TheydothisbecauseBrentpriceexposureismoreeasytomanage.TheunderlyingtradedvolumesofDubaiswapsandtheassociatedIceBrentcontractprovideamorereliableandtransparentbasisforas-sessingthepriceofDubaithananyothermethodologicalapproach.

ArgusbeginsitsassessmentoftheDubaipricebyreportingtheactivemarketinDubaiswapsbasedinSingapore.Dubaiswapsaretradedasanexchangeoffuturesforswaps(EFS).ArgusidentifiesandreportstheprevailingEFSprice,expressedasadifferentialtotheIceBrentprice.ThisEFSvalueissubtractedfromtheprevailingpriceofBrentontheIceat4:30pmSingaporetimetoestablishafixedpriceforDubaiswaps.

ArgusidentifiestheEFSvalueforthefirstthreemonthsforward.ApplyingthesedifferentialstothefirstthreemonthsoftheIceBrentpriceprovidesArguswithabsolutevaluesforthefirstthreemonthsoftheDubaiswapsmarket.

Dubaicrudethatistradedtodayisnotloadedorpricedfortwomonths,sothefirst-monthswappriceisthemarket’svalueofDubai

Mideast Gulf AssessmentsGrade typical

°APItypical

Sulphur %Basis/Loca-

tion Timing Cargo size

Dubai �1 �.0� fob Dubai Month of loading �00,000 bl

Murban �0.� 0.79 fob UAE Month of loading �00,000 bl

Lower Zakum �9.� 1.10 fob UAE Month of loading �00,000 bl

Oman ��.� 1.06 fob Oman Month of loading �00,000 bl

Qatar Land �1.1 1.�� fob Qatar Month of loading �00,000 bl

Qatar Marine �6.� 1.60 fob Qatar Month of loading �00,000 bl

Al-Shaheen �0.� 1.9 fob Qatar Month of loading 600,000 bl

Banoco A M �1.8 �.�� fob Bahrain Month of loading �00,000 bl




inthreemonthstime.Thefirst-monthDubaiswappriceisthereforethesameasthethird-monthDubaiforwardprice.Thisthird-monthforwardpriceisthenusedtoderivethephysicalDubaiprice.ToderivethephysicalDubaiprice,ArgusassessestheDubaiinter-monthspreads.ThereisanactiveintermonthDubaispreadmarketbasedinSingaporeandLondon.Identifyingthespreadvaluebe-tweenthethirdandthesecondmonthandalsothesecondandthefirstmonthallowsArgustocalculatethevalueoffirst-monthDubai.

Intheeventthatthefirsttosecondmonthspreadissoilliquidthatapricecannotbeestablished,Arguswilluseothermarketinforma-tion,suchaspriceindicationsforphysicalDubai.TheseindicationswouldnormallybeforsouthAsiandestinationsandexpressedasapremiumtotheanticipatedpublishedDubaiprice.Arguswillmakeanintelligentassessmentbasedonsuchmarketinformationasisavailabletoestablishavalueforfirst-monthDubai.

ArguscanverifythemarketperceptionofthevalueofDubaibyana-lysingotherkeymarketdifferentialssuchastheBrent-Dubaispread,forwardBrentpricesandthemarketforexchangeforphysical(EFP)contractsinBrent.

ArgusdoesnotusepartialDubaitosetitsDubaipriceassess-ments.OmansubstitutionalityintoDubaiisnotrelevantinaswapsandspreadsapproachtopricediscovery.ThefollowingtableprovidesanexampleoftheArgus assessmentprocessforDubaiforwardmonths:

Dubai forward month calculatorIce Brent month 1 Dec 87.��

Dubai EFS month 1 Dec - �.9�

Dubai swap month 1* Dec = 8�.�9

Dubai forward month �* Feb = 8�.�9

Dubai intermonth Jan/Feb + -1.��

Dubai forward month � Jan = 81.9�

Dubai intermonth Dec/Jan + -0.9�

Dubai forward month 1 Dec = 80.99

*Dubai swap month 1 = Dubai forward month 3

OmanArgusassessesthepriceofOmaninthesamewaythatmostofthemarketassessesthevalueofOman,byinterpretingthevalueofOmancomparedwithDubai.SincetheOmangovernmentbegansettingtheOSPforOmancrudeinlinewiththemonthlyaverageofOmanfuturestradedontheDubaiMercantileExchange(DME)theover-the-counterspottradeofOmanhasbeenpricedinavarietyofways.ArgususesmarketpremiumsforfullcargoesofspotOmanonaDubaioraMOGbasistocalculateitsphysicalOmanpriceassessment.

For example: InthefirsthalfofOctober,Arguswillassessfront-monthOmanasfollows:DecemberOmanequalstheanticipatedpriceofDubaiphysicalcargoesinDecemberplusthemarketpremiumordiscountofOman.

ArgususestheopenlytradedswapsandspreadsintheDubaimar-kettoassessthepriceofDubai.Asaresult,ArgusdoesnothavetouseOmansubstitutionalityintoDubai.

ThefollowingtableprovidesexamplesoftheinputsArgus usestocalculateOmanforwardmonths:

Oman forward month calculator

MOGformula

Dubai-Oman spread

Diff toDubaiswaps

Dubaiswaps

outright

Omanforwardmidpoint

Dec +0.07 -�.�7 -�.�0 8�.�9 80.99

Jan +0.07 -0.07 +0.00 8�.6� 8�.6�

Feb +0.07 -0.07 +0.00 8�.61 8�.61

Murban and Lower Zakum ArgusassessesthepriceofMurbanandLowerZakuminthesamewaythatmostofthemarketassessesthevaluesofMurbanandLowerZakum,byinterpretingthevaluesofMurbanandLowerZakumcomparedwithDubai.

ArgusassessesthepricesofMurbanandLowerZakumusingthepriceofDubaimodifiedbythemarket’sdifferencesbetweenDubaiandtheMurbanandLowerZakumofficialpricesplustheprevailingpremium(ordiscount)forMurbanandLowerZakumascurrentlytraded.Inmoredetail,Arguswillassessfront-monthMurbanandLowerZa-kumasfollows:Front-monthDubaiswappricesplusthedifferencebetweenlastmonth’sOSPandlastmonth’saverageDubaiplustheArgusassessmentofthespotpremium(ordiscount)forMurbanandLowerZakumversustheOSP.

Forthelastthreedaysinanymonth,Arguswillnotusethediffer-encebetweenlastmonth’sOSPandlastmonth’saverageDubaibutwillsubstitutethedifferencebetweenaforecastforthenextOSPandcurrentfront-monthDubaiswaps.

For example: OctoberMurbanequalsOctoberDubaiswapsplus(SeptemberOSPlessSeptemberDubaifront-monthswapsaver-age)plusthemarketpremiumordiscountofthegrade.

Theseassessmentsreflectcargoesloadingtwomonthsfromthedateofpublication.

Qatar Land and Qatar MarineArgusassessesthepriceofQatarLandandQatarMarineinthesamewaythatmostofthemarketassessesthevaluesofQatarLandandQatarMarine,byinterpretingthevaluesofQatarLandandQatarMarinecomparedwithDubai.

ArgusassessesthepricesofQatarLandandQatarMarineusingthepriceofDubaimodifiedbythemarket’sdifferencesbetweenDubaiandtheQatarLandandQatarMarineofficialpricesplustheprevailingpremium(ordiscount)forQatarLandandQatarMarineascurrentlytraded.

Inmoredetail,Arguswillassessfront-monthQatarLandandQatarMarineasfollows:Front-monthDubaiswappricesplusthediffer-encebetweenlastmonth’sOSPandlastmonth’sDubaiOSPplustheArgusassessmentofthespotpremium(ordiscount)forQatarLandandQatarMarineversustheOSP.

For example:OctoberQatarLandequalsOctoberDubaiswaps




plusexpectedOSPadjustment(SeptemberOSPlessSeptemberDubaiOSP)plusmarketdifferential.

Theseassessmentsreflectcargoesloadingtwomonthsfromthedateofpublication.

Al-ShaheenTheAl-ShaheenassessmentisthepriceofAl-Shaheen,acrudefromQatar.ThevalueofAl-ShaheeniscalculatedbyapplyingthemarketdifferentialofAl-ShaheenfobQatartoDubaiswapsforthemonthofloading.Theprevailingmarketdifferentialisalsopublishedseparately.

Thisassessmentreflectscargoesloadingtwomonthsfromthedateofpublication.

Banoco Arab MediumArgusassessesthepriceofBanocoArabMediuminthesamewaythatmostofthemarketassessesthevalueofBanocoArabMe-dium,byinterpretingthevalueofBanocoArabMediumcomparedwiththeaverageofDubaiandOman.ArgusassessesthepriceofBanocoArabMediumusingtheaver-agepriceofDubaiandOmanmodifiedbythemarket’sdifferencesbetweentheaverageofDubaiandOmanwiththeanticipatedBanocoArabMediumofficialprice(basedonthepreviousOSPsetbySaudiAramcoforArabMedium)plustheprevailingpremium(ordiscount)forBanocoArabMediumascurrentlytraded.

Inmoredetail,Arguswillassessfront-monthBanocoArabMediumasfollows:Theaverageoffront-monthDubaiswapsplusthediffer-encebetweentheDubaiOmanaveragewiththemostrecentSaudiAramcoOSPforArabMediumplustheArgusassessmentofthespotpremium(ordiscount)forBanocoArabMediumversustheSaudiOSPforArabMedium.

For example: OctoberBanocoArabMediumequalstheaverageofOctoberDubaiswapsplusthedifferencebetweentheDubaiOmanaverageandtheSaudiOSP,plusthemarketdifferentialforthegrade.Thisassessmentreflectscargoesloadingtwomonthsfromthedateofpublication.

Dubai forwardArgusassessesphysicalDubaifourmonthsforwardincludingthefrontmonth.Front-monthphysicalDubaiisforcargoesloadingtwomonthsfromdateofpublication.Forexample,on15August,thefrontmonthisOctober.TheforwardmonthsassessedareNovem-ber,DecemberandJanuary.On1September,thefrontmonthwillbeNovemberwithforwardassessmentsforDecember,JanuaryandFebruary.

ArgusassessesthepricesofMiddleEastcrudeat4:30pmSinga-poretime.ArgusassessmentsofMiddleEastcrudereflectcargovolumesof400,000blforDubaiand500,000blforothergrades.ArgusassessesphysicalOmanthreemonthsforward.Forexample,on15August,ArguswillassessOctober,NovemberandDecemberOman.

TherolloverofMiddleEastcrudeassessmentstothenextforwardmonthwilltakeplaceonthefirstcalendardayofthemonthunlessitfallsonaweekendorholiday,whenitwillshifttothefirstbusinessdayofthemonth.

Argusassessesthebid/askrangeonDubaiEFSat4:30pmSingaporetimeforthreecalendarmonths.Forexample,on15August,ArguswillassesstheOctober,NovemberandDecemberDubaiEFS.TherolloverofDubaiswapstothenextforwardmonthwilltakeplaceonthefirstcalendardayofthemonthor,incaseofweekendorholiday,onthefirstbusinessdayofthemonth.

Asia-Pacific (Argus Crude page 11)

ArgusassessesthepriceforavarietyofAsia-Pacificcrudegrades.Argususesanintelligentinterpretationofprevailingmarketcondi-tionstoestablishtheassessmentvalues.

ArgusassessmentsofAsia-Pacificcrudesconsistofafixed-priceorformulaassessmentandadifferentialassessment.Allofthesepriceassessmentsaremadewithacutoffof4:30pmSingaporetime,withtheexceptionofthosegradesassessedonaNorthSeaDatedbasis.

ForthosegradesassessedrelativetoNorthSeaDated,thedifferen-tialsareassessedwithacutoffof4.30pmSingaporetime,whiletheunderlyingNorthSeaDatedpriceisassessedat4.30pmLondontime.ThemethodologybehindtheDatedassessmentcanbefoundintheNorthSeasectionandonwww.argusmedia.com.

Asia-Pacific AssessmentsSee table below

Asia-Pacific, Sudan, ESPO Blend and Sakhalin Island Assessments

Grade typical °API

typical Sulphur

%

Basis/Location Timing Cargo size

Minas �� 0.08 fob Indonesia Loading 1�-�� days ahead 100,000 - �00,000 bl Duri �1.� 0.�0 fob Indonesia Loading 1�-�� days ahead 100,000 - �00,000 bl Cinta ��.7 0.1� fob Indonesia Loading 1�-�� days ahead 100,000 - �00,000 bl Widuri ��.� 0.07 fob Indonesia Loading 1�-�� days ahead 100,000 - �00,000 bl Senipah �1 0.0� fob Indonesia Loading 1�-�� days ahead ��0,000 bl Attaka �� 0.09 fob Indonesia Loading 1�-�� days ahead 100,000 - �00,000 bl Ardjuna �7 0.09 fob Indonesia Loading 1�-�� days ahead 100,000 - �00,000 bl Belida �� 0.0� fob Indonesia Loading 1�-�� days ahead 100,000 - �00,000 bl Bach Ho �9 0.0� fob Vietnam Loading 1�-�� days ahead ��0,000 - 600,000 bl Sutu Den ��.8 0.0�1 fob Vietnam Loading 1�-�� days ahead ��0,000 - 600,000 blTapis �6 0.0� fob Malaysia Loading 1�-�� days ahead ��0,000 - 600,000 bl Labuan �9.9� 0.0�8 fob Malaysia Loading 1�-�� days ahead �00,000 - 600,000 blKikeh �6.7� 0.06 fob Malaysia Loading 1�-�� days ahead 600,000 blKutubu Light �� 0.0� fob Papua New

Guinea Loading �0-60 days ahead �00,000 - 6�0,000 bl

Cossack �8 0.0� fob Australia Loading �0-60 days ahead �00,000 - 6�0,000 bl

NW Shelf 60 0.01 fob Australia Loading �0-60 days ahead �00,000 - 6�0,000 bl

Enfield �� 0.1� fob Australia Loading �0-60 days ahead �00,000 - 6�0,000 bl

Stybarrow ��.7 0.117 fob Australia Loading �0-60 days ahead �00,000 - 6�0,000 bl

Vincent 18.� 0.�� fob Australia Loading �0-60 days ahead �00,000 - 6�0,000 bl

Pyrenees 19 0.�1 fob Australia Loading �0-60 days ahead �00,000 - ��0,000 bl

Van Gogh 17 0.�7 fob Australia Loading �0-60 days ahead �00,000 - 6�0,000 bl

Nile Blend ��.76 0.0�� fob Bashayer, Sudan Loading 1�-�� days ahead 600,000 - 1mn bl

Dar Blend �6.� 0.116 fob Bashayer,Sudan Loading 1�-�� days ahead 600,000 - 1mn bl

ESPO Blend �� 0.6 fob Kozmino Loading �0-7� days ahead 700,000 bl

Sokol �7.9 0.�� cif northeast Asia Month of loading 700,000 bl

Vityaz �8 0.18 cif Yosu Month of loading 700,000 bl




IndonesiaArguspublishesassessmentsforIndonesiangradesbasedonspotdealsandmarketinformationforcargoesloading15-45daysfromthepublicationdate.

ThefinalpriceofMinasisassessedbytakingthemarketconsen-susviewoftheMinasspreadtoIceBrentfuturesortoNorthSeaDated.Inadditiontothisfinalprice,Argusalsoshowsthecurrentmarketpremium/discountforMinastotheIndonesianCrudePrice(ICP).TheMinasbasepriceisthepriceleftwhenthismarketpre-mium/discountisremovedfromthefinalMinasprice.

TheDuri assessmentisbasedonthemarketconsensusofthespreadbetweenthegradeandMinas.Intheabsenceofspecificmarketdiscussion,ArguswilltakeintoaccountthespreadbetweentheMinasandDuriICPandactivityongradesofsimilarquality.

TheCintaassessmentisbasedonthemarketconsensusofthespreadbetweenthegradeandMinas.Intheabsenceofspecificmarketdiscussion,ArguswilltakeintoaccountthespreadbetweentheMinasandCintaICPandactivityongradesofsimilarquality.

TheWiduriassessmentisbasedonthemarketconsensusofthespreadbetweenthegradeandMinas.Intheabsenceofspecificmarketdiscussion,ArguswilltakeintoaccountthespreadbetweentheMinasandWiduriICPandactivityongradesofsimilarquality.

TheSenipahassessmentisbasedonthemarketconsensusofthespreadbetweenthegradeandMinas.Intheabsenceofspecificmarketdiscussion,ArguswilltakeintoaccountthespreadbetweentheMinasandSenipahICPandactivityongradesofsimilarquality.

TheAttakaassessmentisbasedonthemarketconsensusofthespreadbetweenthegradeandMinas.Intheabsenceofspecificmarketdiscussion,ArguswilltakeintoaccountthespreadbetweentheMinasandAttakaICPandactivityongradesofsimilarquality.

TheArdjunaassessmentisbasedonthemarketconsensusofthespreadbetweenthegradeandMinas.Intheabsenceofspecificmarketdiscussion,ArguswilltakeintoaccountthespreadbetweentheMinasandArdjunaICPandactivityongradesofsimilarquality.

TheBelidaassessmentisbasedonthemarketconsensusofthespreadbetweenthegradeandMinas.Intheabsenceofspecificmarketdiscussion,ArguswilltakeintoaccountthespreadbetweentheMinasandBelidaICPandactivityongradesofsimilarquality.

MalaysiaArguspublishesassessmentsforMalaysiangradesbasedonspotdealsandmarketinformationforcargoesloading15-45daysfromthepublicationdate.

TheTapisassessmentisthesumofthegrade’scurrentspotpre-miumtoTapisAPPIandtotheforwardpriceforTapisderivedfromArgus’Tapisforwardcurve.

Argusmakesuseofeitherfixed-pricediscussionortheIceBrentto

TapisEFS(exchangeoffuturesforswaps)market,withIceBrentpricesassessedat4:30pmSingaporetime,toderiveaforwardpriceforTapis.

TheTapisforwardmarketisquotedforfourcalendarmonthsandfortwoconsecutivecalendarquarters.Themonthlyandquarterlyassessmentswillrollonthefirstworkingdayofeachmonth.Theforwardpricesareassessedafteratelephone,instantmessengerandelectronicmailsurveyofmarketparticipants.

TheKikehassessmentisthesumofthegrade’scurrentspotpremiumstoTapisAPPIandtheprices30daysforwardforTapisderivedfromArgus’Tapisforwardcurve.

TheLabuanassessmentisthesumofthegrade’scurrentspotpremiumstoTapisAPPIandtheprices30daysforwardforTapisderivedfromArgus’Tapisforwardcurve.

VietnamArguspublishesassessmentsforVietnamesegradesbasedonspotdealsandmarketinformationforcargoesloading15-45daysfromthepublicationdate.

ForBach Ho,Vietnamsetsanofficialsellingprice(OSP),whichsetsoutthepremiumthatBachHolifterswillpaytotheanticipatedpriceofMinascrude.ArgusassessesBachHobyapplyingthisVietnameseOSPtothecurrentMinasbaseprice(seeIndonesiasectionabove)andthenapplyingthegrade’scurrentspotmarketdifferential,asheardinthemarket.

For example:iftheVietnameseBachHoOSPis+$4.00/bl;theMinasbasepriceis$50/bl;andthespotmarketpremiumforBachHois-$2.00/bl,thenArguswouldassessBachHoat$52/bl.

TheSutu DenassessmentisthesumoftheMinasbasepriceandthegrade’scurrentspotmarketpremium/discounttoMinas.

Australia and PNGArguspublishesassessmentsforAustralianandPNGgradesbasedonspotdealsandmarketinformationforcargoesloading30-60daysfromthepublicationdate.

PNG’sKutubu Light isassessedbyaddingthegrade’scurrentspotpremium/discounttoTapisAPPItotheprevailingTapisprice45daysforwardasderivedfromArgus’Tapisforwardcurve(seeMalaysiasectionaboveforfurtherdetails).

For example:ifaKutubuLightcargoloading30-60daysfrompublicationdateistraded,bidorofferedata10¢/bldiscounttoTapis,ArguswillapplythediscounttothevalueofpaperTapiscor-respondingtothepricingperiod(45daysforward)inordertocal-culatetheKutubuLightprice.IfthevalueofthepaperTapismarketaroundthepricingperiodis$70/bl,thenthefixedpriceassessmentforKutubuLightonthatdaywillbe$69.90/bl.

TheCossackassessmentiscalculatedbyapplyingthegrade’sdifferentialrelativetoNorthSeaDatedbasedonamarketconsen-sustothesameday’sNorthSeaDatedvalue.Thedifferentialis




assessedwithacutoffof4:30pmSingaporetimeandappliedtoNorthSeaDated,whichbecomesavailableafter4:30pmLondontime.OndayswhenNorthSeaDatedisunavailableduetoaUKpublicholiday,ArguswilluseasubstituteNorthSeaDatedprice(seebelowfortherelevantmethodology).Intheabsenceofspecificmarketdiscussion,ArguswillalsotakeintoaccountthespreadbetweentheTapisAPPI-linkedCossackpriceandNorthSeaDated.

TheNorthwest Shelfcondensateassessmentiscalculatedbyap-plyingthegrade’sdifferentialrelativetoNorthSeaDatedbasedonamarketconsensustothesameday’sNorthSeaDatedvalue.Thediffer-entialisassessedwithacutoffof4:30pmSingaporetimeandappliedtoNorthSeaDated,whichbecomesavailableafter4:30pmLondontime.OndayswhenNorthSeaDatedisunavailableduetoaUKpublicholiday,ArguswilluseasubstituteNorthSeaDatedprice(seebelowfortherelevantmethodology).

TheEnfieldassessmentiscalculatedbyapplyingthegrade’sdif-ferentialrelativetoNorthSeaDatedbasedonamarketconsensustothesameday’sNorthSeaDatedvalue.Thedifferentialisassessedwithacutoffof4:30pmSingaporetimeandappliedtoNorthSeaDated,whichbecomesavailableafter4:30pmLondontime.OndayswhenNorthSeaDatedisunavailableduetoaUKpublicholiday,ArguswilluseasubstituteNorthSeaDatedprice(seebelowfortherelevantmethodology).

TheStybarrowassessmentiscalculatedbyapplyingthegrade’sdifferentialrelativetoNorthSeaDatedbasedonamarketconsensustothesameday’sNorthSeaDatedvalue.Thedifferentialisassessedwithacutoffof4:30pmSingaporetimeandappliedtoNorthSeaDated,whichbecomesavailableafter4:30pmLondontime.OndayswhenNorthSeaDatedisunavailableduetoaUKpublicholiday,ArguswilluseasubstituteNorthSeaDatedprice(seebelowfortherelevantmethodology).

TheVincentassessmentiscalculatedbyapplyingthegrade’sdif-ferentialrelativetoNorthSeaDatedbasedonamarketconsensustothesameday’sNorthSeaDatedvalue.Thedifferentialisassessedwithacutoffof4:30pmSingaporetimeandappliedtoNorthSeaDated,whichbecomesavailableafter4:30pmLondontime.OndayswhenNorthSeaDatedisunavailableduetoaUKpublicholiday,ArguswilluseasubstituteNorthSeaDatedprice(seebelowfortherelevantmethodology).

TheVanGoghassessmentiscalculatedbyapplyingthegrade’sdifferentialrelativetoNorthSeaDatedbasedonamarketconsensustothesameday’sNorthSeaDatedvalue.Thedifferentialisassessedwithacutoffof4:30pmSingaporetimeandappliedtoNorthSeaDated,whichbecomesavailableafter4:30pmLondontime.OndayswhenNorthSeaDatedisunavailableduetoaUKpublicholiday,ArguswilluseasubstituteNorthSeaDatedprice(seebelowfortherelevantmethodology).

ThePyreneesassessmentiscalculatedbyapplyingthegrade’sdiffer-entialrelativetoNorthSeaDatedbasedonamarketconsensustothesameday’sNorthSeaDatedvalue.Thedifferentialisassessedwithacutoffof4:30pmSingaporetimeandappliedtoNorthSeaDated,

whichbecomesavailableafter4:30pmLondontime.OndayswhenNorthSeaDatedisunavailableduetoaUKpublicholiday,ArguswilluseasubstituteNorthSeaDatedprice(seebelowfortherelevantmethodology).

SudanArgusassessmentsofSudanesecrudesconsistofamarketdif-ferentialtoNorthSeaDatedandanoutrightpricecalculatedbyapplyingthedifferentialtoNorthSeaDated.

ArguswillpublishassessmentsforSudanesegradesbasedonspotdealsandmarketinformationfor600,000-1mnblcargoesloading15-45daysfromthepublicationdate.ThecutofftimeforSudaneseassessmentsis4:30pmSingaporetime.

The Nile Blendassessmentiscalculatedbyapplyingthedif-ferentialofNileBlendrelativetoNorthSeaDatedbasedonamarketconsensustothesameday’sNorthSeaDatedvalue.Thedifferentialisassessedwithacutoffof4:30pmSingaporetimeandappliedtoNorthSeaDated,whichbecomesavailableafter4:30pmLondontime.

OndayswhenNorthSeaDatedisunavailableduetoaUKpublicholiday,ArguswilluseasubstituteNorthSeaDatedprice(seebelowfortherelevantmethodology).

TheDar Blendassessmentiscalculatedbyapplyingthedif-ferentialofDarBlendrelativetoNorthSeaDatedbasedonamarketconsensustothesameday’sNorthSeaDatedvalue.Thedifferentialisassessedwithacutoffof4:30pmSingaporetimeandappliedtoNorthSeaDated,whichbecomesavailableafter4:30pmLondontime.

OndayswhenNorthSeaDatedisunavailableduetoaUKpublicholiday,ArguswilluseasubstituteNorthSeaDatedprice(seebelowfortherelevantmethodology).

ESPO BlendSee table on page 14

TheESPO BlendassessmentisthepriceofcrudefromtheEastSiberia-PacificOcean(ESPO)pipeline,loadingatKozminointheRussiaFarEast.TheoutrightpriceofESPOBlendiscalculatedbyapplyingtherollingaveragemarketdifferentialofESPOBlendfobKozminototheDubaipriceassessmentforthemonthofloading,adjustedforinter-monthDubaispreadsaccordingtothepublishedDubaibasismonth.

Therollingaveragemarketdifferentialiscalculatedonthebasisofpricesforcargoestradedwithinoneloadingprogrammeupuntilthelastcargooftheloadingprogrammeistraded.

TheArgusassessmentofESPOBlendreflectsthemarketpriceof700,000blcargoesloading30-75daysaheadofthepubli-cationdate.ThecutofftimeforESPOBlendassessmentsis4:30pmSingaporetime.Theprevailingaveragevolume-weightedmarketdifferentialispublishedseparately.




Sakhalin IslandArgusassessmentsofcrudesfromSakhalinIslandinRussiaconsistofamarketdifferentialtoDubaiswapsforthemonthofloadingandanoutrightpricecalculatedbyapplyingthedifferentialtoDubaiswapsforthemonthofloading.ArguswillpublishassessmentsforSakhalingradesbasedonspotdealsandmarketinformationfor700,000blcargoesloadingtwomonthsaheadofthepublicationdate.ThecutofftimeforSakhalinIslandassessmentsis4:30pmSingaporetime.

Sakhalin Island AssessmentsSee table on page 14

TheSokol assessmentisthepriceofSokol,acrudefromSakhalinIslandinRussia.ThevalueofSokoliscalculatedbyapplyingthemarketdifferentialofSokolcifnortheastAsiatoDubaiswapsforthemonthofloading.Theprevailingmarketdifferentialisalsopublishedseparately.

TheVityazassessmentisthepriceofVityaz,acrudefromSakhalinIslandinRussia.ThevalueofVityaziscalculatedbyapplyingthemarketdifferentialofVityazcifYosutoDubaiswapsforthemonthofloading.Theprevailingmarketdifferentialisalsopublishedsepa-rately.

ThecutofftimefortheSakhalinIslandassessmentsis4:30pmSingaporetime.

Substitute DatedSubstituteDatedreplacesNorthSeaDatedasthebasepriceforCossack,NorthwestShelfcondensate,Stybarrow,Enfield,Vincent,NileBlendandDarBlendonthefewdayseachyearwhentheAsiancrudeoilmarketsareoperating,butapublicholidayintheUKmeansthatLondonwillnotproduceaNorthSeaDatedprice.

SubstituteDatediscalculatedat4.30pmSingaporetime.SubstituteDatedcomprisestheIceBrent4.30pmSingaporeone-minutemark-erplusorminusadifferentialrepresentingthedifferencebetweentheBrentfuturesmarketandthephysicalNorthSeamarket.

Thisdifferentialiscalculatedinthefollowingmanner:ArgustakesthemostrecentlyavailableNorthSeaDatedpriceassessedinLondon,thenitsubtractstheLondonIceBrentone-minutemarkerfromthatsameday.

For example:Datedon24Decemberwas$72/blandtheIceBrent4.30pmLondonone-minutemarkerwas$70/bl–adifferenceof$2/bl.TocalculateSubstituteDatedon26December,whenSingaporeisworkingbutLondonisnot,Argus willaddthis$2/bldifferencetotheIceBrent4.30pmSingaporeone-minutemarker($69/bl)togiveaSubstituteDatedpriceof$71/bl.

ThemarketdifferentialsforNorthwestShelfcondensate,Stybarrow,Enfield,NileBlendandDarBlendwillthenbeaddedtothisSubsti-tuteDatedpriceinlinewiththeirrespectivemethodologies.

Official formula prices (Argus Crude page 12)

ArguspublishesofficialformulapricesforcrudefromSaudiArabia,Iran,Yemen,Kuwait,IraqandDubai.Theseareexpressedasdif-ferentialstovariousbenchmarksforagivenloadingmonthandaresetbynationaloilcompanies.

Official selling prices (Argus Crude page 12)

ArguspublishesofficialsellingpricesforcrudefromAbuDhabi,Qatar,Oman,Indonesia,MalaysiaandBrunei.Theseareexpressedasoutrightpricesforagivenloadingmonthandaresetbynationaloilcompanies.

Reference prices (Argus Crude page 12)

Argus publishestheOpecReferenceBasketmonthlyaveragepriceandalsotheJapaneseCrudeCocktailimportbasketprice.




Americas assessments

PricesforthefollowingcrudegradesarelistedinArgus Crude,alongwithdailymarketcommentary.CoverageincludesUSGulfcoastandmidcontinent,USwestcoast,Canada,andLatinAmer-ica.AcompletemethodologyforeachofthesecrudepricescanbefoundinthemethodologydocumentforArgus Americas Crude whichcanbelocatedhere.

West Texas Intermediate (WTI)

Grade API Gravity

% Sulphur Basis

Low/High Minimum Volume

VWA Aggregate

VolumeMinimum

WTI Cash Cushing �9.0 0.�0 Cushing, OK 1,000 b/d 1,000 b/d

WTI CMA �9.0 0.�0 Cushing, OK 1,000 b/d 1,000 b/d

WTI Midland �9.0 0.�0 Midland, TX 1,000 b/d 1,000 b/d

WTI P-Plus �9.0 0.�0 Cushing, OK �00 b/d 1,000 b/d

US Gulf Coast

Grade API Gravity

% Sulphur Basis


VWA Aggregate

VolumeMinimum

Bonito ��.7 1.0� fob St. James, LA �00 b/d 1,000 b/d

Eugene Island ��.1 1.�� fob St.

James, LA �00 b/d 1,000 b/d

HLS ��.0 0.�� fobEmpire, LA 1,000 b/d 1,000 b/d

LLS (Month One) �7.0 0.�8

fob Capline St. James

LA1,000 b/d 1,000 b/d

LLS (Month Two) �7.0 0.�8

fob Capline St. James

LA�00 b/d 1,000 b/d

Mars (Month One) �8.7 1.8 fob

Clovelly, LA 1,000 b/d 1,000 b/d

Mars (Month Two) �8.7 1.8 fob

Clovelly, LA �00 b/d 1,000 b/d

Poseidon �1 1.7 fob Houma, LA �00 b/d 1,000 b/d

Southern Green Canyon

�8.7 �.�8

fob Nederland, TX or Texas

City, TX

�00 b/d 1,000 b/d

Thunder Horse ��.7 0.6� fob

Clovelly, LA 1,000 b/d 1,000 b/d

US Midcontinent

Grade API Gravity

% Sulphur Basis


VWA Aggregate

VolumeMinimum

WTI CMA �9.0 0.�0 Cushing, OK 1,000 b/d 1,000 b/d

WTI Midland �9.0 0.�0 Midland, TX 1,000 b/d 1,000 b/d

WTI P-Plus �9.0 0.�0 Cushing, OK �00 b/d 1,000 b/d

WTS (Month One) ��.� 1.90 Midland, TX 1,000 b/d 1,000 b/d

WTS (Month Two) ��.� 1.90 Midland, TX �00 b/d 1,000 b/d

US West Coast

Grade API Gravity

% Sulphur Basis


San Joaquin Light Blend �8.� 1.10 Belridge Station, CA 1,000 b/d

Line 6� �8.� 1.10 Hynes Station, CA 1,000 b/d

Midway Sunset 1�.0 1.�0 Station �6, CA 1,000 b/d

Midcontinent DeliveredEquivalent Assessments

Grade API Gravity

% Sulphur Origin Freight

($/bl)Delivered Location

LLS �7.0 0.�8 fob Capline St. James LA $0.�� Chicago area

LSB �7.0 0.�8 fob Cromer, Manitoba $1.7� Chicago area

Mars �8.7� 1.81 fob Clovelly, LA $0.67 Chicago area

WCS �0.7 �.�1 fob Hardisty, Alberta $�.99 Chicago area

LLB �0.9 �.�7 fob Hardisty, Alberta $�.99 Chicago area

Crudes assessed according to volume-weighted average method:

Grade Density(kg/m3)

APIGravity

%Sulphur

Pricing Basis

VWA Aggregate

VolumeMinimum


Syncrude (SYN) 860 �1-�� 0.1-0.�

Pembina AOSP at

Edmonton

1,000 b/d; 1�9m�

�00 b/d; 80m�

Western Canadian Select (WCS)

9�� 0-�1 �.�-�.7 Husky at Hardisty

1,000 b/d; 1�9m�

�00 b/d; 80m�

Americas (Argus Crude pages 13-19)

http://web04.us.argusmedia.com/ArgusStaticContent//Meth/americas_crude_latest.pdf




US Gulf CoastGrade API

Gravity%

Sulphur Basis Timing Minimum Volume

Basrah Light �0.0 �.00 cif US Gulf coast

10-�� Days Forward �00,000 bl

Escravos ��.0 0.1� cif US Gulf coast


Forties �0.� 0.�6 cif US Gulf coast


Kissanje �9.8 0.�8 cif US Gulf coast


Nemba �8.7 0.19 cif US Gulf coast


Qua Iboe �6.6 0.1� cif US Gulf coast


Saharan Blend �6.0 0.10 cif US

Gulf coast10-�� Days

Forward �00,000 bl

US West CoastGrade API

Gravity%

Sulphur Basis Minimum Volume

ANS ��.� 0.89 cif US west coast �00,000 bl

Oriente ��.0 1.�0 cif US west coast �60,000 bl

CanadaGrade API

Gravity%

SulphurPricing Basis Timing Minimum

Volume

Hibernia ��.0 0.�� fob Whiffen Head, Newf.


Terra Nova ��.� 0.�8 fob Whiffen Head, Newf.


Canada

Grade API Gravity

%Sulphur

Pricing Basis

Low/HighMinimum Volume

Condensate 61-6� 0.08-0.�0Enbridge

CRW pool at Edmonton

�00 b/d; 80m�

Mixed Sweet (MSW) �9-�0 0.�� Enbridge

at Edmonton1,000 b/d;

1�9m�

Lloyd Blend (LLB) �0-�1 �.�7 Hardisty �00 b/d

Light Sour Blend (LSB) �8.0 0.88

Enbridge or Westspur at

Cromer�00 b/d

Latin AmericaGrade API

Gravity%

Sulphur Basis Timing Minimum Volume

Cano Limon �9.� 0.�0 fobColombia


Castilla Blend 18.8 1.97 fob

Colombia10-�� Days

Forward �00,000 bl

Cusiana ��.6 0.1� fob Colombia


Escalante ��.1 0.19 fob Argentina


Isthmus Formula ��.6 1.�0 fob Mexico

Current calendar month

�00,000 bl

Maya Formula ��.0 �.�0 fob Mexico Current ca-

lendar month �00,000 bl

Napo 18.� �.00 fob Ecuador


Olmeca Formula �9.� 0.80 fob Mexico

Current calendar month

�00,000 bl

Oriente ��.0 1.�0 fob Ecuador


Vasconia ��.� 0.8� fob Colombia


Argus Sour Crude Index (ASCI)ArguspublishesadailypriceseriesthatrepresentsthevalueofUSGulfcoastmediumsourcrudebyincludingtransactionsfromthreeseparatecrudestreams:Mars,PoseidonandSouthernGreenCanyon.TheArgusSourCrudeIndex(ASCI)isapricingtoolthatprovidesabroaderindexofUSGulfcoastmediumsourcrudevalueforuseincontracts.AfulldescriptionofthemethodologyfortheASCIpriceisavailablebyclickinghere.

Updates

Forthepublicationschedulecheckwww.argusmedia.com.TheArgus Americas Crudemethodologyisconstantlyupdatedandrevised.Thelatestavailablemethodology(whichmaysupersedetheoneyouarereading)isavailableatwww.argusmedia.com.

http://web04.us.argusmedia.com/ArgusStaticContent//Meth/ASCI.pdf

Documents

U ns g · Last Updated: OctOber 2010 The most up-to-date Argus Crude methodology is available on Meth O d OLO gy and specificati O ns g U ide