MEDIA RELEASE PR36892
Platts to Launch Russian Pricing Reference for New Asia-Bound Oil Starting Mid-
December
MOSCOW, Nov. 2 /PRNewswire-AsiaNet/ --
Platts, the energy information division of The McGraw-Hill Companies,
plans to launch a price assessment for the new Russian crude oil which is
slated to start flowing to Asian markets on December 16. The new crude
stream, East Siberian Pipeline Oil (ESPO), will be exported from the port of
Kuzmino near Vladivostok in Russia's Far East at an initial rate of 300,000
barrels per day.
Platts, a leading global oil information provider with a 100-year history
of assessing physical energy and metals prices, has been working closely with
Russian energy ministry officials and producers in the planning of this new
crude assessment and will provide transparent price discovery for the new oil
stream.
"We've been holding discussions with the Russian authorities and
producers for over a year and we plan to publish a new price assessment as
soon as the shipments begin," said Jorge Montepeque, Platts Global Editorial
Director for Markets. "The Asian markets are heavily dependent on imported
oil and the role of Russian oil has been growing in recent years. The Eastern
Siberian Pacific Ocean pipeline will enable supplies from the Eastern
Siberian fields to supply some of the rapidly growing energy needs in Asia."
Platts estimates that the shipments of the new stream will likely rise to
600,000 barrels/day over the next few years, with a substantial part of East
Siberian Pipeline Oil expected to be bound initially for China.
"We view the ESPO project as an important step towards diversifying the
outlets for Russia's crude oil market, demonstrating the increasing role that
Russian oil plays in the world's supply needs," said Mr. Vitalii Vasilievich
Karaganov director of the department of oil and oil products processing at
Russia's Ministry of Energy.
"Initially, we expect ESPO pricing to be a differential to commonly used
benchmarks such as Platts Dubai and Platts Dated Brent, but due to its
location, ample production levels and wide equity ownership, it has the
elements that could help it become a major price indicator in Asia," said
Montepeque.
Platts Dubai and Platts Dated Brent are recognized by the global oil
industry as benchmarks against which other oil grades and refined products
are referenced. While many grades of oil and pricing references exist
worldwide, benchmark status of an oil or price assessment is determined by
industry acceptance and adoption in the open marketplace.
For more information on crude oil, visit the Platts website.
About Platts: Platts, a division of The McGraw-Hill Companies (NYSE:
MHP), is a leading global provider of energy and commodities information.
With a century of business experience, Platts serves customers across more
than 150 countries. An independent provider, Platts serves the oil, natural
gas, electricity, emissions, nuclear power, coal, petrochemical, shipping,
and metals markets from 17 offices worldwide. Platts' real-time news,
pricing, analytical services and conferences help markets operate with
transparency and efficiency. Traders, risk managers, analysts, and industry
leaders depend upon Platts to help them make better trading and investment
SOURCE: Platts
CONTACT: Kathleen Tanzy,
+1-212-904-2860,
Kathleen_tanzy@platts.com,
In Asia: Casey Yew
+65-653-06552,
In Europe: Shiona Ramage,
+44-207-1766153
Translations:
NEWS 
