Cairn India selects Platts Dated Brent for Oil Pricing

Rhea-AI Summary

S&P Global Platts announced that Cairn India Ltd., a unit of Vedanta Ltd., has adopted the Platts Dated Brent crude oil benchmark for pricing its Rajasthan crude sales. This marks the first instance of indigenous crude in India being priced against a global benchmark, effective from April 2020. Platts Dated Brent is utilized for over 60% of the world's oil pricing. Cairn India is India's largest private crude oil producer, and this transition reflects the trust in Platts' price reporting methods, according to Vera Blei, Head of Oil Markets at S&P Global Platts.

Positive

• Cairn India adopts Platts Dated Brent benchmark for Rajasthan crude pricing.
• This transition enhances the credibility of India's oil pricing in global markets.
• Platts Dated Brent is recognized for pricing over 60% of global oil.

Negative

• None.

SINGAPORE, Sept. 14, 2020 /PRNewswire/ -- S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets, today announced that Cairn India Ltd., a unit of Vedanta Ltd. has adopted the Platts Dated Brent crude oil benchmark to price the majority of its flagship Rajasthan ("RJ") crude sales. This marks the first time a prominent grade of indigenously produced crude in India has been priced off the global oil benchmark.

Cairn India, the largest private crude oil producer by volume in India, began using Platts Dated Brent for sales of Rajasthan crude in contracts beginning April 2020. Platts Dated Brent is the globally recognized crude benchmark, which estimates suggest is used to price more than 60% of the world's oil.

With this step, India joins a host of largely sweet crude oil producers in Asia Pacific that have transitioned to using Platts Dated Brent in pricing their crude oil sales over the past decade.

Vera Blei, Head of Oil Markets, S&P Global Platts said: "The selection of Platts Dated Brent as the price benchmark to price one of India's flagship crude oil grades reflects the confidence Cairn India and buyers of RJ crude have in the quality of our independent price reporting. The integrity of the methodology underpinning our assessment processes allows Platts price benchmarks to be relied upon by the world's most important energy markets, which explains Cairn's decision to select Platts Dated Brent for use in its term oil contracts."

Produced in India's western state of the same name, Rajasthan is a medium-heavy and waxy sweet crude with API of 29.50 degrees and sulfur of 0.086% by weight. The Rajasthan blocks, the first of which was discovered in 2004, are considered to be the largest onshore hydrocarbon find in India in decades. Most of Rajasthan crude flows to refineries located on the west coast of India.

Americas	Kathleen Tanzy
	+1 917 331 4607
	kathleen.tanzy@spglobal.com

About S&P Global Platts

At S&P Global Platts, we provide the insights; you make better-informed trading and business decisions with confidence. We're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to our expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping.

S&P Global Platts is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.platts.com.

 

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SOURCE S&P Global Platts

FAQ

What is the significance of Cairn India's adoption of the Platts Dated Brent benchmark?

Cairn India's adoption marks the first indigenous crude oil in India priced against a global benchmark, enhancing the credibility of India's oil in global markets.

When did Cairn India start using the Platts Dated Brent for its crude sales?

Cairn India began using the Platts Dated Brent benchmark for sales of Rajasthan crude in contracts starting April 2020.

What is the role of S&P Global Platts in the oil market?

S&P Global Platts is the leading provider of information and benchmark prices for the commodities and energy markets, offering insights that aid trading and business decisions.

What is the quality of Rajasthan crude as per the press release?

Rajasthan crude has an API of 29.50 degrees and a sulfur content of 0.086% by weight, classified as medium-heavy and waxy sweet.

How does Cairn India's move impact investors in SPGI?

Investors may see enhanced confidence in S&P Global Platts' pricing methodologies, potentially influencing perceptions of SPGI's market position and credibility in the energy sector.