RIM Japan Products Report

Information Rim organizes India Delhi seminar, Nov 22 Indian companies are some of the few first in the world to chase the shale gas dream by investing in shale gas development in the US. With shale gas production increasing, what is the likelihood of it replacing petroleum products in India or at least compensating for the shortfall in some cases? To provide a platform for players from the natural gas, LNG, refinery and downstream product businesses to interact and discuss this issue, Rim Intelligence is organizing a seminar in Delhi, India on Nov 22. Participation fee is US$400 (excluding accommodation).

For inquiries and further details, contact: Daily Intelligence

Rim Intelligence Co. Tel: +81-3-3552-2411 Email: [email protected]

Holiday Notice Rim will not publish the report on Nov 4 for a national holiday.

/Condensate Crude

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RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894

TOKYO SPOT CRUDE ASSESSMENTS (01Nov13) --Cash Crude Nov Dec Jan Feb Mar WTI - 96.46- 96.51 96.75- 96.80 96.78- 96.83 96.58- 96.63 BFO - 109.19-109.24 108.93-108.98 108.46-108.51 107.94-107.99 DTD Brt 108.91-108.96 108.88-108.93 108.49-108.54 107.97-108.02 107.47-107.52 Dubai - - 106.66-106.71 105.29-105.34 104.57-104.62 Spreads Nov Dec Jan Feb Mar WTI/BFO / -12.76/-12.71 -12.21/-12.16 -11.71/-11.66 -11.39/-11.34 BFO/Dubai / / 2.24/ 2.29 3.14/ 3.19 3.34/ 3.39 Oman/Dubai / / 0.08/ 0.13 0.21/ 0.26 0.13/ 0.18 Intermonth Spreads Nov/Dec Dec/Jan Jan/Feb Feb/Mar Mar/Apr BFO / 0.23/ 0.28 0.44/ 0.49 0.49/ 0.54 0.49/ 0.54 Dubai / / 1.34/ 1.39 0.69/ 0.74 0.33/ 0.38 Oman* / / -0.02/ 0.02 -0.02/ 0.02 -0.02/ 0.02 *Intermonth spreads of Oman is Premium/discounts to OSP(MOG)

--Paper Crude Nov Dec Jan Feb Mar Dubai 106.66-106.70 105.29-105.33 104.57-104.61 104.21-104.25 103.86-103.90 DME/Dubai 0.07/ 0.15 0.20/ 0.28 0.12/ 0.20 0.08/ 0.16 0.03/ 0.11 Murban swp 5.50/ 5.70 5.50/ 5.70 5.50/ 5.70 / / DTD/Dubai 2.23/ 2.27 3.57/ 3.61 3.90/ 3.94 3.74/ 3.78 3.59/ 3.63 *DME/Dubai is the spread between DME Oman swap and Dubai swap.

--Physical Crude (AG) --January-- Outright value Premium Dubai* 106.66-106.71 2.07/ 2.12 Oman 106.77-106.82 0.06/ 0.11 Oman* 106.77-106.82 2.18/ 2.23 Murban 110.19-110.24 0.00/ 0.05 Lower Zakum 109.92-109.97 -0.05/ 0.00 Umm Shaif 109.39-109.44 -0.10/-0.05 Upper Zakum 107.12-107.17 -0.05/ 0.00 Qatar Land 108.81-108.86 -0.25/-0.20 Qatar Marine 106.27-106.32 -0.05/ 0.00 Al Shaheen* 105.79-105.84 1.20/ 1.25 Arab Medium** 106.67-106.72 -0.32/-0.27 Basrah Light 106.57-106.62 -0.02/ 0.03 D.F.Condensate* 107.39-107.44 2.80/ 2.85 L.S.Condensate* 106.89-106.94 2.30/ 2.35 Masila*** 109.49-109.54 1.00/ 1.10 Marib Light*** 109.99-110.04 1.50/ 1.60 Iran Light 109.08-109.13 Iran Heavy 106.85-106.90

--February-- Outright value Premium Dubai* 105.29-105.34 1.06/ 1.11 2 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894 Oman 105.53-105.58 0.06/ 0.11 Oman* 105.53-105.58 1.30/ 1.35 *Premium for Dubai, Oman, Al Shaheen and D.F.Condensate, L.S.Condensate are over Dubai quote **Premium for Arab Medium is over Aramco formula for Arab medium ***Premium for Masila and Marib Light are over Dated Brent -Premium for all other grades are over each OSP -D.F.Condensate is Deodrised Field condensate

--Physical Crude (Africa) --December-- Outright value Premium Bonny light* - 111.38-111.48 - 2.50/ 2.60 Brass River* - 111.18-111.28 - 2.30/ 2.40 Qua Iboe* - 111.98-112.08 - 3.10/ 3.20 Agbami* - 109.78-109.88 - 0.90/ 1.00 Cabinda* - 109.63-109.73 - 0.75/ 0.85 Djeno* - 106.93-107.03 - -1.95/-1.85 Girassol* - 110.58-110.68 - 1.70/ 1.80 Hungo* - 107.33-107.43 - - -1.55/-1.45 - Nemba* - 109.68-109.78 - - 0.80/ 0.90 - Dalia* - 107.18-107.28 - -1.70/-1.60 Pazflor* - 107.03-107.13 - -1.85/-1.75 Zafiro* - 109.13-109.23 - 0.25/ 0.35 Doba* - 105.78-105.88 - - -3.10/-3.00 - Nile Blend** - 103.15-103.25 - -3.20/-3.10 Dar Blend* - 96.18- 96.28 - -12.70/-12.60 * All premium are over Dated Brent ** Premium is over Minas ICP on FOB basis.

--Physical Crude (Other) --January-- Outright value Premium Sokol* 112.47-112.57 7.90/ 8.00 Vityaz* 109.77-109.87 5.20/ 5.30 ESPO** 109.47-109.57 4.90/ 5.00 Azeri*** 113.29-113.39 4.80/ 4.90 Urals**** 110.19-110.29 1.70/ 1.80 Forties**** 111.19-111.29 2.70/ 2.80 *Premium for Sokol and Vityaz is over Dubai quote on CFR Yosu. **Premium for ESPO is over Dubai quote on FOB Kozmino. ***Premium for Azeri is over DTD Brent on CFR South East Asia. ****Premiums for Urals and Forties are over DTD Brent on CFR North East Asia.

--Physical Crude (Asia) --December-- Outright value Premium Minas - 109.05-109.15 - 2.70/ 2.80 Cinta - 108.65-108.75 - 1.90/ 2.00 Widuri - 108.75-108.85 - 2.00/ 2.10 Duri - 105.85-105.95 - 2.95/ 3.05 Lalang - 111.25-111.35 - 1.70/ 1.80 Handil Mix - 106.30-106.40 - 4.40/ 4.50

3 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894 Attaka - 107.90-108.00 - 4.60/ 4.70 Belida - 111.60-111.70 - 2.10/ 2.20 Ardjuna - 104.80-104.90 - 3.05/ 3.15 Arun Con + 105.85-105.95 + 2.60/ 2.70 Walio - 102.45-102.55 - 2.75/ 2.85 Senipah Con + 106.20-106.30 + 2.95/ 3.05 *All premium are over the Indonesian Crude Price (ICP)

--Indonesian Crude Basket Prices-- Indonesian Light Crude Basket Price - 108.60-108.70 - Indonesian Medium Crude Basket Price - 108.82-108.92 - Indonesian Medium-Heavy Crude Basket Price - 108.08-108.18 -

--Rim Special Crude Basket Prices-- Crude Basket Price for China Products* - 108.07-108.17 -

*The average price of Dubai, DTD Brent, Cinta, to which the Chinese government refers when adjusting domestic retail prices for refined products.

--December-- Outright value Premium Tapis* - 115.68-115.78 - - 6.80/ 6.90 - Labuan* - 117.58-117.68 - 8.70/ 8.80 Kikeh* - 116.88-116.98 - 8.00/ 8.10 Gippsland* - 110.38-110.48 - 1.50/ 1.60 Thevenard* - 115.88-115.98 - 7.00/ 7.10 Mutineer Exeter* - 116.98-117.08 - 8.10/ 8.20 Cossack* - 110.38-110.48 - 1.50/ 1.60 NWS Con* - 107.48-107.58 - -1.40/-1.30 Laminaria* - 107.48-107.58 - -1.40/-1.30 Kitan* - 108.58-108.68 - -0.30/-0.20 Varanus* - 109.58-109.68 - 0.70/ 0.80 Le Gendre* - 115.53-115.63 - 6.65/ 6.75 Kutubu* - 111.28-111.38 - 2.40/ 2.50 Daqing*** - 109.30-109.40 - 2.30/ 2.40 Xi Jiang**** - 107.65-107.75 - 1.30/ 1.40 Panyu**** - 107.45-107.55 - 1.10/ 1.20 Enfield* - 116.68-116.78 - - 7.80/ 7.90 - Sty Barrow* - 116.28-116.38 - - 7.40/ 7.50 - Vincent* - 112.53-112.63 - - 3.65/ 3.75 - Pyrenees* - 115.68-115.78 - 6.80/ 6.90 Van Gogh* - 111.38-111.48 - 2.50/ 2.60 Bach Ho* - 115.88-115.98 - - 7.00/ 7.10 - Rang Dong* - 112.88-112.98 - 4.00/ 4.10 Su Tu Den* - 113.38-113.48 - 4.50/ 4.60 T.G.T* - 113.78-113.88 - 4.90/ 5.00 Chim Sao* - 114.88-114.98 - - 6.00/ 6.10 - Seria Light - 115.73-115.83 - *Premiums are over Dated Brent. ***Premium for Daqing is over OSP. ****Premiums for Xi Jiang and Panyu are over Minas ICP.

4 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894

NYMEX FUTURES (31Oct13) -WTI Crude Dec Jan Feb Mar Settle 96.38 96.65 96.66 96.47 Change -0.39 -0.41 -0.37 -0.33 Open 96.62 96.92 96.92 96.75 High 97.03 97.28 97.24 97.04 Low 96.03 96.31 96.32 96.14 Estimated Volume: 588,153 Open Interest(Oct 30) : 1,759,305

ICE BRENT CRUDE FUTURES (31Oct13) Dec Jan Feb Mar Settle 108.84 108.63 108.17 107.67 Change -1.02 -0.85 -0.75 -0.69 Open 109.69 109.33 108.72 108.12 High 109.87 109.48 108.92 108.40 Low 108.55 108.36 107.90 107.40 Waited avg109.10 108.84 108.35 107.83 Estimated Volume: 627,721 Open Interest(Oct 30) : 1,463,703

TOCOM MIDEAST CRUDE FUTURES (01Nov13)(Yen/kl) Nov Dec Jan Feb Mar Apr Change -110 -210 -180 -170 -170 Volume 39 35 51 110 804 1,242 Open 65,860 64,900 64,490 64,270 63,960 63,780 High 65,950 64,940 64,540 64,280 64,010 63,780 Low 65,690 64,640 64,270 63,970 63,700 63,450 Settle 65,910 64,920 64,490 64,220 63,950 63,710 Open Interest(Oct 31):19,125 1lot = 50kl Exchange rate : 98.23

TRANSACTIONS REPORTED ON THE DAY North Sea/Africa/Russia crude (Oct 31) Dec ESPO: RosneftAstra to Taiyo Oil at Dubai linked price (740kb for 5-8 loading), RosneftAstra to major at Dubai linked price (740kb for 19-22 loading) Dec Nemba: Sonangol to Chinese end user at DTD +slightly below $1.00/bbl (950kb) Dec Hungo: Sonangol to Chinese end user at DTD -around $1.50/bbl (950kb) Dec Kissanje: Sonangol to Chinese end user at DTD +about 50cts/bbl (950kb) Dec Castilla Blend: Meta Petroleum to Shell at WTI -3.00 or more (1,000kb for 5-25 loading) Dec arrival Melitta condensate: Marubeni to Arabian Gulf end user at undisclosed price (380kb)

Correction: RIM deletes the Dec arrival Melittah condensate as it turned out that TPPI did not take the condensate.

Arabian Gulf crude (Oct 31) Dec Upper Zakum: ExxonMobil to trader at OSP +20cts/bbl Jan/2014 onward D.F.C.: Tasweeq to European trader at undisclosed price (volumes 5 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894 unknown)

Asia-Pacific crude (Oct 31) Dec Tapis: Petronas to a Singapore based trader at slightly lower than DTD+$7.00/bbl (2H loading, a partial cargo) Dec Bunga Kekwa: Petronas to Mercuria at DTD link (400-450kb), PV oil to P&C at a premium of mid $5.00/bbl to DTD (23-29 loading 300kb) Dec Bunga Ohkid: Petronas to Mercuria at DTD link (400-450kb), PV oil to P&C at a premium of high $5.00/bbl to DTD (10-16 loading 350kb)

Correction: RIM deletes the Dec arrival NWSC deal mentioned in the report on Oct 31 as it turned out that TPPI did not take the cargo.

MARKET COMMENTARY --Benchmark Crude Summary, Nov 1 2013 ICE Brent crude for December delivery stood at $109.21/bbl as of 2:30 p.m. on Friday Tokyo time, down 29cts/bbl from the same time the previous day but up 37cts from the previous day’s London close. An economic indicator released on Friday showed that China’s manufacturing activity was improving. Despite falls in Asian shares and the strong dollar against the euro, crude futures were lifted by buying on expectations of rising fuel oil demand in China.

The December Dated Brent price, the benchmark for regional and arbitrage grades, as of 14:30 Tokyo time inched down by 7cts/bbl from the same time the previous day to $108.90/bbl. Meanwhile, the Dated to Front Line (DFL) for the Dec contract was flat at around 20cts/bbl. The January contract hovered at around 30cts/bbl.

The December Dubai paper, the benchmark price for Middle Eastern crude grades and Far East grades, edged higher 1ct/bbl to $104.59. In the trade of inter-month spread, the Nov/Dec spread was bid at $1.35/bbl. The Dec/Jan spread was bid at 72cts/bbl, countered by an offer at 76cts/bbl. In the trade of Brent/Dubai EFS, the Dec contract was bid at $3.85/bbl. The Dec WTI contract, the benchmark for US and South American grades, firmed 2cts/bbl at $96.48/bbl.

As for the market outlook for the Dec Brent on December on Friday, the upside will be capped by a weak gasoline market, said a broker, predicting the contract to move within $108.00 and $110.00/bbl.

--AG CRUDE Flat prices for January-loading Middle Eastern crude grades held steady, as the benchmark Dubai papers drifted within tight ranges. In floating based trade, trends for each grade were increasingly uncertain. It was hard to predict new official selling prices (OSPs) especially as December-loading markets for light grades and medium/heavy grades were volatile. In any case, the markets for January-loading Murban and Upper Zakum would be influenced by the spreads with rival Saudi Arabian crudes and Oman crude.

Spot differentials for January-loading Oman were quoted at a premium of $2.18-2.23/bbl to Dubai quotes. As for the values for Oman, an oil refiner in Northeast Asia evaluated that the market would be slightly above alternative Dubai prices. Physical values for January Dubai were calculated at a premium of about $2.10/bbl to Dubai quotes, based 6 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894 on the November/January inter-month spread for Dubai papers. The trends DME Oman values for the January contract, which would be a new front month contract from Friday, would set the direction for Middle Eastern medium/heavy grades led by Qatar Marine.

Spot differentials for January-loading Abu Dhabi Murban were quoted at flat to a premium of 5cts/bbl to OSP. The market started from positive territory. As for the October Murban OSP to be unveiled early this month by Abu Dhabi National Oil Co (ADNOC), it was widely predicted that the premium against Dubai quotes would be reduced by 50-75cts/bbl from the previous month. In this case, several market sources expected the discussions for January-loading Murban to start at a small premium to OSP, though this hinged on the spread with competing crude Saudi Arabian Arab Extra Light (AEL). This was because main end-users in Asia could replenish crude inventories after depleting stocks at the end of December, an end of an accounting period, and Northeast Asia would enter a heating oil demand period. Falling spot supplies would also underpin the January Murban market.

ADNOC will change the supply system for Murban to equity producers from January 2014 as reported. Of the existing equity holders, French Total would shift to buy cargoes with no destination obligations would maintain the current intake ratios in 2014. In addition, US Exxon Mobil heard opted to reduce its term intakes, while Royal Dutch Shell was in the middle of discussing with ADNOC about the contract. British BP would take destination free cargoes on top of cargoes for its own refining system.

In addition, Partex with an interest of 2% until this year would not take anything from 2014. As new players, US Chevron signed two contracts to take avails for their own refining systems and to take avails with no destination obligation. One or two oil refiners in China were believed to take Murban with no destination clauses through boosting their term intakes. Murban free of the destination obligations would be traded at OSP, same as cargoes for own refining systems, but ADNOC could ask a premium of the 10cts/bbl level to OSP. Under the circumstances, spot supplies for Murban would decline from January 2014 onward, and some players believed that the spot supply would account for only 20% at most of the total production.

Spot differentials for January-loading Abu Dhabi Upper Zakum were quoted at a discount of 5cts/bbl to flat to OSP. The market started in negative territory. It was widely believed that The September OSP for Upper Zakum would be reduced by 30-50cts/bbl from the previous month. In that case, a few market sources said that the January Upper Zakum market would still be sensed as slightly expensive. A number of players gave the similar evaluations for Qatar Marine whose OSP is settled in line with Upper Zakum.

In the trade of December-loading Middle Eastern crudes, US Exxon Mobil sold one cargo of Upper Zakum in the middle of this week to a trader. The price was at a premium of 20cts/bbl to OSP. The trader earlier clinched Murban to sell a third party, forcing the trader to cover shorts at a high price, according to a source familiar with the situations. Meanwhile, India’s HPCL Mittal Energy (HMEL) on Thursday issued a buy tender for December-loading Basrah Light for 1.00 to 2.00 million bbl. The tender closed on Thursday, but the award details were yet to emerge as of 17:00 Tokyo time.

In the trade of Middle Eastern condensates, Qatar International Petroleum Marketing Co or TASWEEQ so far clinched a term deal with a European trader for D.F.C. from January

7 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894 2014 onward. The details about the contract period, volumes and the prices were unknown. TASWEEQ normally uses the Qatar Condensate Price (QCP) that is calculated on oil product prices ex Middle East to trade D.F.C. But some buyers requested TASWEEQ to trade DFC at prices linked to Dubai quotes, citing that QCP would be hard for hedging. The term contract for D.F.C. is normally reviewed every three months.

In the trade of DME Oman, the January contract was bid at $106.99/bbl as of 16:30 Tokyo time on Friday, countered by an offer at $107.20/bbl. The gap between the mean ($107.10/bbl) and January Dubai swaps were at $2.65/bbl in favor of Oman. The January contract ended at $106.93/bbl in Asian trading on Thursday.

--AFRICAN/EUROPEAN/RUSSIAN/AMERICANS CRUDE Flat prices for December-loading West African and Mediterranean grades edged lower, tracking a softer tendency for the benchmark Dated Brent prices. In floating based trade for December-loading, spot premiums for Angolan Nemba narrowed slightly in the last trading cycle. Elsewhere, RosneftAstra heard awarded additional tender for December-loading ESPO.

In the trade of East Siberian ESPO blend, Russian producer RosneftAstra awarded its December-loading sell tender. It sold one cargo each for 5-8 loading and 19-22 loading, each 740,000bbl. The former cargo was heard sold to Taiyo Oil in Japan, while the later cargo was heard supplied to a major. The awarded prices were unknown at this stage.

In the trade of December-loading Angolan grades, Angolan producer Sonangol this week sold one cargo each of Nemba, Hungo and Kissanje to China. The price of the Nemba was heard at a premium of smaller than $1.00/bbl to Dated Brent, while the Hungo and Kissanje prices were heard at a discount of around $1.50/bbl and a premium of about 50cts/bbl to Dated Brent, respectively. Of these, the Nemba price shed slightly from the initial talking levels for December amid an overhang of lighter grades led by Nigerian grades.

In the trade of arbitrage condensates, Marubeni heard sold one cargo for Libyan Melittah condensate for January arrival to an end-user in Middle East. The cargo was initially heard supplied to TPPI in Indonesia. But it turned out that TPPI cancelled its December arrival condensate buy tender that closed on October 25 and did not award any cargoes in the tender.

In the trade of Latin American grades, Colombia’s Meta petroleum awarded its December-loading Castila Blend sell tender that closed on Wednesday to Royal Dutch Shell. The major purchased one 1.00 million bbl cargo for 5-25 loading at a discount of the $3.00/bbl level to WTI. Shell took the crude for a second time in a row. Shell earlier purchased one 1.00 million bbl cargo for December 1-20 loading at a discount of the $3.00/bbl level to WTI.

--ASIA PACIFIC CRUDE Flat prices for December-loading regional grades softened as the Dated Brent prices shed slightly from the previous day. In December-loading floating based trade linked to Dated Brent and ICP, some grades for Malaysian and Australian grades softened. Vietnamese grades also showed signs of easing slightly. Additional demand from players such as majors was not as brisk as expected.

8 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894 Spot differentials for Malaysian Tapis inched down at a premium of $6.80-6.90/bbl to Dated Brent, down 5cts/bbl from the previous day. The country’s state-owned Petronas sold one cargo for second-half June loading on the spot market. The cargo was sold to a trader in Singapore at a premium of slightly smaller than $7.00/bbl to Dated Brent. Meanwhile, regarding the December-loading Tapis as reported on Thursday, it turned out that Royal Dutch Shell purchased a partial cargo for first-half December loading. Following the deal, Petronas with two to three grades such as Cendor and Penara with small production was in the middle of marketing them.

In the trade of December Vietnamese grades, the country’s state-owned PV Oil belatedly issued a sell tender for Chim Sao. It offered a 300,000bbl cargo for December 26-30 loading. The tender will close on November 6. Production for December Chim Sao heard faced problems, thus a number of players expected PV Oil to skip a sell tender for Chim Sao. For other Vietnamese grades, some December barrels were unsettled. European Vitol was said to be offering December Su Tu Den for January arrival. Japanese trading houses including Petro Summit were able to supply December Su Tu Den. Mitsubishi Corp also showed readiness to sell Te Giac Trang (T.G.T).

PV Oil also awarded its Bunga Kekwa and Bunga Orkid sell tenders that closed on Thursday. It sold a 350,000bbl cargo for Bunga Orkid for December 10-16 loading at a premium of high $5.00/bbl level to Dated Brent, while a 300,000bbl cargo for Bunga Kekwa for 23-29 loading was awarded at a premium of mid-$5.00/bbl to Dated Brent.

In the trade of December-loading Bunga series, Malaysia’s Petronas also was said to have sold both of the grades on the spot market. Singapore trader Mercuria purchased each 400,000-450,000bbl, according to a few market sources. The prices for these grades were heard also at premiums of the $5.00/bbl level to dated Brent. These two cargoes were likely to be resold to end-users in Thailand.

It turned out that TPPI in Indonesia eventually skipped purchases of NWSC as well as Melittah condensates as mentioned above. Several market sources said that a partial cargo for November in the hands of BP and a December cargo by Woodside would have been supplied to TPPI. But Pertamina Energy Service (PES) did not award any cargo in its buy tender for TPPI as offers failed to meet the company’s target. PES is likely to reissue a tender soon.

Meanwhile, TPPI could have purchased Indonesia’s Senipah condensate for its condensate splitter, in addition to November arrival NWSC cargoes purchased earlier, according to a few market sources. “I would not be surprised if they take barrels for 300,000-400,000 bbl as November arrival,” said a source familiar with the situations. SKKMigas has suspended issuing tenders for Senipah condensate since October-loading, and was taking 300,000-400,000bbl in the domestic market. But Senipah condensate sometimes is injected to a refinery owned by Pertamina itself, so that the condensate is not necessarily supplied to TPPI. In any case, SKKMigas’s Senipah condensate would not be supplied in the international market for a while.

In the trade of December-loading Australian medium/heavy grades, Australia’s Woodside Petroleum and Mitsui & Co jointly were in talks to sell Enfield. “The offer for the Enfield are heard at a premium of about $8.00/bbl to Dated Brent,” said a European player. Elsewhere, spot avails for Vincent were uncommitted. The above mentioned European player

9 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894 said that it would be difficult to lure buying at a premium of $4.00/bbl to Dated Brent.

Meanwhile, regarding the December-loading Van Gogh mentioned in the RIM report on October 23, it turned out that a European major took the cargo for its refinery in Australia. A source familiar with the deal said that seller Apache would supply a combined of 400,000bbl through dividing it in half, each 200,000bbl. The floating production storage and offloading vessel (FPSO) for Van Gogh would enter a six-month maintenance in January, making it hard to store a large volume at one time for December-loading as well. An Aframax vessel is used as the FPSO for Van Gogh, limiting the loading volumes to about 500,000bbl at maximum normally.

In the trade of the Rim Trading Board, BP Singapore offered a physical 100,000bbl cargo of December Attka at $1.50/bbl below December ICE Brent. The major at the same time bid for December Attaka/Ardjuna paper spread, 50,000bbl, at $3.75/bbl.

--NYMEX WTI/ICE BRENT, Oct 31 The NYMEX crude futures fell for a third straight day on Thursday, weighed down by a fall in US equities and a strong dollar. The Dec contract was down 39cts/bbl at $96.38/bbl. The contract slipped to the lowest level since June 28. Investors moved to avert risks, putting a downward pressure on the market. Expectations of a prolonged quantitative easing in US retreated due to a statement by the Federal Reserve after the Federal Open Market Committee (FOMC). Meanwhile, the Chicago Purchasing Managers Index (PMI) in October stood at 65.9, up from 55.7 the previous month. The indicator showed an expansion of the US economy, which could prompt the Federal Reserve to start scaling down the quantitative easing earlier than expected. Under the circumstances, market players cautioned that money flows into equities and commodity markets would shrink. The Dow Jones Industrial Average fell, which also spurred selling in crude futures. In the foreign exchange market, the dollar advanced sharply against the euro, reducing the appeal of dollar-based commodities. Dec Brent on the ICE futures fell $1.02/bbl at $108.84/bbl. The Dec Brent crude’s premiums against WTI narrowed 63cts/bbl at $12.46/bbl. On NYMEX, Nov RBOB gasoline fell 1.71cts/gallon at 263.37/bbl. Nov heating oil was down 1.08cts/gallon at $296.78/bbl. The Dec WTI contract was traded at $96.32/bbl as of 9:00 Tokyo time on Friday, down 6cts/bbl from the previous day.

Market News --OSPs for October 2013 and calculated Dubai prices The October OSPs for Middle Eastern and Mexican crude are as follows.

Saudi ASL 114.876 (-0.244) AEL 112.126 (-0.794) AL 110.076 (-1.244) AM 107.876 (-1.394) AH 104.976 (-1.744） Iranian Light 110.290 (-1.210） IH 107.760 (-1.400) Kuwait 107.626（-1.344） Hout 108.906 (-1.324) Khafji 104.976 (-1.744) Isthmus 108.380 (-1.140) Maya 99.380 (-1.740) Basrah Light 107.476 (-1.094) Dubai 106.636 (-1.640)

--Dec Dec Oman settles at $106.70/bbl, down $1.77 The average price for December Oman crude contract on the Dubai Mercantile Exchange (DME)

10 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894 was set on Thursday at $106.70/bbl, down $1.88/bbl from the previous month. The average price is used as the December-loading official selling price (OSP) for Oman crude, marketed by the Omani Ministry of Oil and Gas (MOG).

OSPs and the spread with Dubai are as follows 13/12 106.70 ---- 13/11 108.58 --- 13/10 106.96 --- 13/09 103.59 +0.32 13/08 100.21 -6.90 13/07 100.43 -3.09

--Indonesia SKKMigas to set Oct Minas term price at $108.35/bbl (provisional) Indonesia’s SKKMigas is expected to set the October term price or ICP for Minas at $108.35/bbl, down $5.58/bbl from the previous month. ICPs were largely settled on a calculation basis. SKKMigas, a regulatory body for Indonesia’s oil and gas sectors, will set the ICPs formally in a day or so.

--JX restarts 110,000b/d CDU at Mizushima B refining complex Japanese oil refiner JX Nippon Oil & Energy Co restarted the No.3 110,000b/d crude distillation unit (CDU) at the Mizushima B refining complex in Okayama prefecture, the refiner said Oct 31. The unit had been shut down since Oct 7 when a fire broke out in a furnace within close proximity to the CDU. The CDU was not damaged by the fire although JX decided to shut the CDU and related secondary units down as a safety precaution. With the restart of the Mizushima B CDU, all refineries operated by JX are currently on line. JX currently has a refining capacity of 1,605,700b/d, a figure that will drop to 1,425,700b/d on Apr 1, 2014 when the refiner decommissions the 180,000b/d crude distillation unit at the Muroran refinery in Hokkaido.

--JX Nov throughput plan for domestic sales up 21.4% on year For domestic oil products demand in November, Japanese oil refiner JX Nippon Oil & Energy Co plans to process a combined 5.90-mil kl of crude oil and condensate or roughly 1.24-mil b/d, up 21.4% over actual volumes for the same month a year earlier, the refiner announced Oct 31. The figure does not include volumes to be processed for oil products that JX plans to export in November. In a separate plan received from JX, the refiner targets oil product export volumes for November at 570,000kl, up from 260,000kl the same month a year earlier. Although the exact yield of products per barrel of crude oil was not disclosed, industry sources noted that a one-to-one ratio could be applied to surmise refinery throughput figures. Based on that, JX throughput plan for November is likely to be 6.47-mil kl (1.36-mil b/d) compared to 5.12-mil kl (1.07-mil b/d) for the same month a year earlier. JX currently has a refining capacity of 1,605,700b/d, a figure that will drop to 1,425,700b/d on Apr 1, 2014 when the refiner decommissions the 180,000b/d crude distillation unit at the Muroran refinery in Hokkaido. The closure of the Muroran unit is in line with the refiner’s capacity reduction plans.

--Taiwan CPC crude throughput at 330,000b/d, unchanged on week Crude throughput at CPC in Taiwan was at 330,000b/d, unchanged from a week earlier, according to a survey conducted by Rim Oct 31. On Oct 18, a 100,000b/d crude distillation unit (CDU) at 300,000b/d Dalin refinery entered a 40-day maintenance period while a 100,000b/d CDU at the 220,000b/d Kaohsiung refinery has been shut down since May. The

11 RIM INTELLIGENCE CRUDE/CONDENSATE 3 F , Y a e s u Dori Hata Bldg, 1 - 9 - 8 Hat chobori, Chuo - ku, Tokyo, 104 - 0 0 3 2 J a p a n Tel:3552-2411 Fax:3552-2415 Singapore Office TEL:65-6345-9894 FAX:65-6345-9894 CDU will only resume in case of emergency. On Oct 18, a 30,000b/d RDS unit at the 200,000b/d Taoyuang refinery entered a 40-day maintenance period. In addition, at the 220,000b/d Kaohsiung refinery a 30,000b/d RDS has been shut down. At the Dalin refinery, a 30,000b/d reformer will have a two-month-maintenance while on Oct 28 at the same location an 80,000b/d RDS was restarted. Operation rate of the RDS was at around 70%. As for CPC’s petrochemical plants, the No.4 385,000 mt/year naphtha cracker entered a three-month-maintenance on Oct 10. The No.5 500,000 mt/year and the No. 6 600,000 mt/year naphtha crackers were operating at 90% of capacity.

--PetroChina Jan-Sep 2013 crude output at 698-mil bbl, up 2.2% on year PetroChina Co Ltd, the listed arm of state-owned China National Petroleum Corp (CNPC) saw oil production for the nine months to September 2013 total 698-mil bbl, up 2.2% over output for the corresponding period a year earlier, the company said Oct 29. Revenue for the period was put at RMB 1.68 trillion ($276-bil), up 5.3% from the same period a year earlier while net profit grew 9.6% to RMB 95.3-bil ($15.6-bil), increases the company attributed to optimization of resources and efforts applied to cost reduction programs. In refining operations for the first nine months of 2013, PetroChina refineries processed a combined 734.5-mil bbl of crude oil or roughly 2.69-mil b/d, a figure that is slightly above the company’s combined refining capacity of 2.57-mil b/d. In terms of production, combined output of gasoline, gasoil and kerosene totaled 66.76-mil bbl, relatively flat compared to production for the same period a year earlier.

Tokyo office -- Tel: (81) 3-3552-2411 Fax:(81)3-3552-2415 e-mail: [email protected] Singapore office -- Tel (65)-6345-9894 Fax (65)-6345-9894 e-mail [email protected] Chinese office -– Tel: (86)-10-8527-1630 Fax:(86)-10-6428-1725 e-mail: [email protected] Indian office – Tel: (91)-98795-50717 E-MAIL: [email protected] Shanghai office – Tel: (86)-21-5111-3575: e-mail: [email protected]

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