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MEETING DOCUMENTATIONTHE 25th CFR FAR EAST

OPEN SPECIFICATION NAPHTHA MEETING 14th and 15th April 2016

Tokyo Conference Center, Shinagawa, Tokyo, Japan

website: www.osn.sg contact: [email protected]

open spec naphthawww.osn.sg

Located at:Singapore Land Tower, 50 Raffles Place, Level 30, Singapore 048623

Contact: [email protected]


MEETING CHAIRMAN: PHIL POLLOCKCO-CHAIRMAN/ORGANISER: ANDREW WILDING

Company DelegateAmerex Petroleum Corporation Aki PengAsahi Kasei Chemical Corporation Dai KuroyamaAsdem Asia Pte Ltd Andrew Wilding (C)Aspen Oil Phil Pollock (C)Bloomberg News Ann KohBP Singapore Pte Limited Amit AgrawalBP Singapore Pte Limited Hong Soon OhBP Singapore Pte Limited Yanyi HuangBP Singapore Pte Limited Shinichi MatsudaBP Singapore Pte. Limited Tina GohCargill International Trading Pte Ltd Shuhui NgCargill International Trading Pte Ltd Marc CheongCargill International Trading Pte Ltd Jae Yim MyungCastleton Commodities In Soo RyuChevron USA (Singapore Branch) Stella WibisonoDaelim Corporation Munsik Oh Daelim Corporation Alexis Kim Ginga Petroleum Joey ParkGinga Petroleum Balik RiggsGS Caltex Chris WooGS Caltex John KimGunvor Singapore Pte Ltd Takyong YiGunvor Singapore Pte Ltd Hans KooHanwha Corporation Lina LimHanwha International (S) Pte Ltd Travis LimHanwha Total Petrochemical Co., Ltd. Chaejung LimHanwha Total Petrochemical Co., Ltd. Yunho NamHyundai Oilbank Co., Ltd. Cho Suk HyunHyundai Oilbank Co., Ltd. Shin Dong HoIdemitsu International (Asia) Pte. Ltd. Seishi FukunagaIdemitsu International (Asia) Pte. Ltd. Hiroki HamayaIdemitsu Kosan Co., Ltd Mayumi NakaokaIdemitsu Kosan Co., Ltd Shinnosuke Uehara

2016 Open Specification Naphtha Meeting - Shinagawa, Tokyo, Japan Page 1


2016 OPEN SPECIFICATION MEETING DELEGATES

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Idemitsu Kosan Co., Ltd Kensuke KobayashiJX Nippon Oil & Energy Corporation Keisuke Oda JX Nippon Oil & Energy Corporation Yusuke YoshidaJX Nippon Oil & Energy Corporation Emiko TakamuraJX Nippon Oil & Energy Corporation Hikaru AkaoKoch Refining International Pte Ltd Pierre De RougeKorea Petrochemical (KPIC) Daniel KimLOTTE Chemical Kyung Chul KwakLotte Chemical Titan SDN BHD Shy Yu LimLUKOIL Asia Pacific Pte Ltd Frank ArricaLUKOIL Asia Pacific Pte Ltd Simon Di FrancoLUKOIL Asia Pacific Pte Ltd Sook Han WongMaruzen Petrochemical Ryo YamashiroMaruzen Petrochemical Yoshiaki IwasakiMaruzen Petrochemical Mizuki SaitoMitsubishi Chemical Corporation Yoshifumi KumeMitsubishi Chemical Corporation Sho TakinoMitsubishi Chemical Corporation Makoto YaneMitsubishi Corporation Keisuke ShimamuraMitsubishi Corporation Shogo YahagiMitsubishi Corporation Toshinobu SatoMitsubishi Corporation Tomo KawamuraMitsui & Co., Ltd Toru KomatsubaraMitsui & Co., Ltd Kei KurahashiMitsui Chemicals Inc. Hideo ItoMRI Group Pte. Ltd Jerry JuNoble Clean Fuels Ltd Nurhayati Mohd NoorOil Price Information Service (OPIS) Charles KimOil Price Information Service (OPIS) Ronald KwanOil Price Information Service (OPIS) Jiwon ChungOilive Pte Ltd Alan YimPETCO Trading Labuan Co. Ltd. Yoke Phooi WongPETCO Trading Labuan Co. Ltd. Jamalullail Jamal PetroChina International Andre ChoiPetroChina International Singapore Yooung Ki ParkPetroDiamond Singapore Kasai MichiyoPetroDiamond Singapore Rajat Sengupta



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Phillips 66 International Trading Flora CheongPhillips 66 International Trading Shaun KhooPlatts Calvin LeePlatts Elaine TanPlatts Ronald ShimamuraPlatts George NgRepsol Trading Singapore Pte Ltd Jose Pascual SendinoRim Intelligence Yoshiya FutakawaRim Intelligence Yasuo YamadaRim Intelligence Kazushi UemuraShell International Eastern Trading Co Jiun Woei TanShowa Denko K.K. Hiroyuki YamadaShowa Denko K.K. Kimihiro UrataniShowa Denko K.K. Takuma AoyamaSK Energy International Pte Ltd Jin Yong ParkSK Energy International Pte Ltd Cobin ChoiSK Trading International Alex LeeSOCAR Trading Singapore Pte Ltd Roy KimSOCAR Trading Singapore Pte Ltd Tony SongS-Oil Corporation Hanho SukS-Oil Corporation Joonhyuk BankStandard Chartered Bank Satoshi UchidayaStatoil Asia Pacific Pte. Ltd. Kunio YokokawaStatoil Asia Pacific Pte. Ltd. Lain Heng ChiaSumitomo Chemical Co., Ltd Susumu YamazakiSumitomo Chemical Co., Ltd Hideki MatsuuraTonenGeneral Sekiyu K.K Makoto ShibamotoTonenGeneral Sekiyu K.K. Norikatsu KamioTotal Trading Asia Pte Ltd Shusuke TsukiokaTotal Trading Asia Pte Ltd Kim DukjunTrafigura Pte Ltd Singapore Matthijs Van Der GaagTrafigura Pte Ltd Singapore David YooTrafigura Pte Ltd Singapore Wei Ming LimVitol Asia Pte Ltd Ivy Tan


MISSION STATEMENT


The primary purpose of an Open Specification Naphtha Meeting is to provide an open forum for discussion between producers, suppliers, consumers, buyers and traders and other parties involved in the business of buying, selling and trading Naphtha on CFR Far East Open Specification Form Naphtha Contract open market terms (OSN).

The meeting provides a means for exchanging views and stimulating discussion on current and future trends in the supply and utilisation of Naphtha for refining or as a petrochemical feedstock, the trading of the OSN contract generally, and a medium by which views, thoughts and observations can be shared by the OSN industry as a whole.

In particular, the meeting format is designed to establish a positive agenda for implementing changes and creating open contract terms for the benefit of the entire OSN industry and the creation of a mechanism by which fair and open agreement can be reached on the contract terms.

The primary focus of this 25th CFR Far East Open Specification Form Naphtha Contract Meeting will be the creation and adoption of new open market specification terms (OSN terms) for the open trading of Naphtha.


OSN MEETING ANTI-TRUST AND COMPLIANCE CODE OF CONDUCT


The Meeting Delegates should not engage in any activities that could be construed as violating anti-trust laws or any internal or external corporate compliance regulations or laws.

Such laws prohibit agreements or understandings among competitors that restrain trade or otherwise restrict competition. Prohibited practices include collusive agreements which may have an effect upon prices or other terms and conditions of sale to, or purchase from, third parties; which set levels of production or purchases by individual companies; or which allocate markets or customers. Collusive agreements may be implied by joint conduct or actions that appear to be in concert. Government authorities may be able to prove the existence of collusive agreements by circumstantial evidence, such as the occurrence of a meeting at which agreement could have been reached, followed by parallel conduct in the marketplace.

At OSN meetings, it is understood that competitors and potential competitors will be in attendance. It is therefore especially important to avoid even the appearance of undue cooperation, inducing in particular any formal or informal exchange of information that could facilitate cooperation among competitors. You are therefore advised to avoid discussions regarding the prices at which you currently purchase or sell, or intend to purchase or sell, products to or from individual third parties; the quantities you intend to produce or purchase, the specific customers or vendors with whom you do business profits or profit margins; market conditions for any particular commodity or volume of material; the specific availability of supply or customer-specific demand for quantities of material; or the markets in which you purchase or sell products.

Only topics on the Agenda will be discussed at each meeting. Detailed minutes of meeting discussions will be kept, and minutes will be circulated to all participants.

All Delegates are asked to adhere to this code of conduct that will ensure strict compliance with anti-trust laws and compliance and read the anti-trust and corporate compliance statement on page 6.

For the sake of good order any questions of potential anti-trust or compliance sensitivity should be referred to a lawyer.


CFR FAR EAST OSN ANNUAL MEETING ANTI-TRUST AND CORPORATE

COMPLIANCE STATEMENT


TO BE READ BY ALL DELEGATES

Our goal is to have a productive meeting over the next two days and we have a full Agenda. However, several of the conference attendees compete with one another. Therefore, it is important that we adhere to our Agenda and avoid any discussions or comments that may not be appropriate. We all wish to comply with the antitrust laws and we should strive to avoid even the appearance of any impropriety.

During this conference, DO NOT, in fact or appearance, discuss or exchange information on:

• Individualcompanyprices,pricechanges,discounts,allowances,credittermsetc.

• Individualcompanyproductionandcapacityetc.

• Individualcompanybids,contracts,plans

• Mattersrelatingtoactualorpotentialindividualsuppliersorcustomers

• Plansofindividualcompanies

• Ratesorratepolicies

This list is not exhaustive but I hope it gives every conference attendee an idea of what should not be discussed during today’s session.

Please note that prohibited discussion topics apply equally to discussions that may occur during breaks, meals and social activities.

I invite all Delegates to promptly object to any questions or comments that they do not believe are appropriate for this conference.

Note: All meetings will be minuted.

Thank you for your attention.

ANDREW WILDING


DAY ONE – FRIDAY 14 APRIL 2016 [09:15 – 15:00]Tokyo Conference Center, 4th Floor, Room 406

09:15 – 10:00 Registration with coffee/tea, breakfast snacks and fresh cut fruit

10:00 Meeting starts

10:00 – 11:00 Welcome to the 25th OSN meeting – agenda items – panel and floor discussion

11:00 – 11:30 Coffee break

11:30 – 12:30 Continuation of meeting - agenda items - panel and floor discussion

12:30 – 14:00 Luncheon gathering - Tokyo Conference Center, 3nd floor restaurant.

14:00 – 15:00 Agenda items – panel and floor discussion

15:00 End of first day

Food and Drinks Reception: 14 April 2016 - 17:30 – 19:004th Floor Foyer

Tokyo Conference Center

Shinagawa, 1-9-36 Konan, Minato-ku, Tokyo, Japan

Hosts: Amerex Petroleum Corporation, Aspen Oil and Ginga Petroleum

DAY TWO – FRIDAY 15 APRIL 2016 [09:45 – 15:00]Tokyo Conference Center, 4th Floor, Room 406

09:45 – 10:15 Coffee/tea, breakfast snacks and fresh cut fruit

10:15 – 11:00 Panel and floor discussion on agenda items

11:00 – 11:30 Coffee break

11:30 – 12:30 Continuation of meeting - agenda items - panel and floor discussion

12:30 – 14:00 Luncheon gathering - Tokyo Conference Center, 3nd floor restaurant.

14:00 – 15:00 Conclusions, meeting summary and action to be taken

15:00 Meeting end

OSN Meeting Timetable



1. Consensus on a method/mechanics for making decisions to change the OSN contract – proposal from Co-Chairman - 70% majority of those attending and voting by secret ballot or 70% of any committees that are formed to make recommendations for change (for e.g. to the specification) leads to a change in the contract.

2. Is an OSN “Association” the way forward?

3. Specification - the purpose of an “open specification contract” and what is the average suppliable/workable specification required by the OSN market for delivering petrochemical grade Naphtha into Japan and Korea?

4. Is a two “Tier Specification” of straight run Tier 2.1 (a) and Commercial Tank and STS Naphtha (2 (1) (b) workable or not?

5. Discussion on CS2 - sources of CS2, test methods and what is being requested as far as levels of CS2 are concerned?

6. What are the requests for the changes to the specification as far as Nitrogen are concerned?

7. Mercury issues discussion of the significance of the test results provided and the exclusion of Skikda from 2 (1) (b).

8. Commercial Tank cargoes - on what basis will they be permitted?

9. STS cargoes - agreement on the addition of STS cargoes to the contract - discussion on quality and quantity determination.

10. Arbitrage cargoes - definition of arbitrage cargoes and testing proposals.

11. Practice statements on Nominations, Time for Nominations and Pro-Rating of Laytime.

MEETING AGENDA



APPENDIX 1Test results of CS2 (>1ppm) in 2015



APPENDIX 2Test results of Mercury for A2310 and

SKIKDA in 2015

－



APPENDIX 3Test results of Total Nitrogen (>1ppm)

in 2015




Singapore Land Tower 50 Raffles Place, Level 30 Singapore 048623website: www.osn.sg contact: [email protected]

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