OT05343A - PRT: valuation of crude oils and products - category 2 - Alba

Crude oil	Reference price	Period used to calculate differential	Minimum volume for calculation of differential
Alba	005 pricing based upon the NDD*.	Rolling average of all AL cargoes in the period 65 days to 30 days (inclusive) prior to the Completion of Load of the NAL disposal requiring valuation. PLUS A freight differential (positive or negative) between Rotterdam (the deemed delivery location) and the actual delivery location, as distributed to all Alba partners by the Operator (which is to be submitted to LB OIL & GAS as part of the PRT1A).	3 standard volume (600k bbls) AL cargoes**.

* Where a reference price is stated, this will be based upon LB Oil & Gas’s published daily North Sea Reference Value, with effect from 1 July 2006.

** Should the volume in the specified period be too small, include additional cargoes until the minimum volume has been achieved. The cargoes to use are those nearest to the specified period on a time basis.

Nearest on a time basis means;

• for cargoes preceding the specified period; in reverse date order
• for cargoes following the specified period; in date order.

A cargo with the shorter time difference between it and the specified period will be used in preference to a cargo with a larger time difference, regardless of whether that cargo follows or precedes the period.

In case there are two cargoes with equal time difference, include both as additional cargoes.