Pricing Formula

JCC= Japan Crude Cocktail or Japan custom cleared crude.Myanmar – LNG 1. India Pn = 1.1+JCC X 0.06 JCC: is the average of JCC values for the month of n-3 to n-14, where n is the month in which LNG is being delivered from the project. 2. Korea Gas Corporation Pn= 0.125 X JCC (n-3) – [0.0033XPc3(n-1) – 0.153 X (0.125XJCC(n-3) + 0.80 JCC (n-3): average of JCC for three month prior to delivery month Pc3 (n-1): price per metric ton for the weighted average of the CIF import prices of propane into Korea in the month “n-1”. 3. Marubeni Corporation (Japan) Pn = 0.11 X JCCm+0.72 JCCm: average of two month (n-2), three month (n-3) and four month (n-4) JCC prior to delivery month. 11 / MMBTU. containing three and one-half percent (3. 180 cst). Cargoes.5%) sulfur. B = The High Sulfur / Low Sulfur Fuel Oil Basket (“HS / LSHO Basket”) is valued as equal parts of: (1) (2) (3) (4) bulk residual fuel oil.PMT Price Price of Gas for each MMBTU for each Contract Quarter shall be determined by the following formula: Price = Base Price x (A/B) Where : A = A value calculated for the HS / LSFO Basket. The Ceiling Price (“Ceiling Price”) for Panna-Mukta Fields is equal to $ 5. evaluated for the twelve (12) months preceding the first month of any Contract Quarter calculated on the basis of the arithmetic average of the monthly values of the prices of the listed products as published in Platt’s Oil gram Price Report. basis ARA.(These values are derived from the mean of the daily ranges on days the postings are published to give a monthly value). and bulk residual fuel oil. basis Italy). [ ]. . (Arab Gulf. The Ceiling Price (“Ceiling Price”) for Mid & South Tapti Fields is equal to $ 5. (Singapore HSFO. and bulk residual fuel oil. quoted for Northwest Europe Cargoes. containing one percent (1%). basis Italy. Basis ARA).A value calculated for the HS / LSFO Basket. evaluated for the twelve (12) months April 1993 through March 1994. (Cargoes CIF NEW. FOB Med. viscosity 180 centistokes. FOB HSFO 180 cst) The Price of Gas from each field shall not be less than the Floor Price and more than the Ceiling Price as mentioned hereinafter: The Floor Price (“Floor Price”) for Panna-Mukta and Mid & South Tapti Fields is equal to $ 2. CIF. and bulk residual fuel oil. containing one percent (1%) sulfur. quoted for Mediterranean.57/MMBTU. viscosity 180 centistokes. FOB Arab Gulf. sulphur.73/MMBTU. Singapore Cargoes. (Cargoes. 5*K + C + ER*(CP-25)0.15 Fixed component Biddable component Brent crude linked component − − − − − − K=1 if ER is more than 25 and less than 65 K=ER/25 if ER is 25 or lower K=ER/65 if ER is 65 or more C is the biddable component (a non zero positive integer) As per term sheet signed between GAIL and RIL.5+0+ER*(60-25) 0.5+4+71. CP floor has been kept at 25 and CP cap at 65 Presently ‘CP’ is greater than the ceiling and is not expected to come below 65 in the near future so the Brent crude linked component is likely to remain based on CP cap.7 = 41*2. to review it − CP is the average price or Brent crude oil in US$/barrel for previous FY.5+4+(41*1.5 + C + ER*(CP-25)0. Thus RIL gas price (Considering USD 1=41 INR) as per term sheet is : = 112. an alternate publication shall be mutually agreed upon.3 =187.5) + 0 + ER*1.Parties agree to convert US$ / barrel prices for fuel oil as published in Platt’s Oil gram to US $ / MMBTU using a conversion factor of 6.8 Rs /MMBTU or 4. RIL gas price shall be as under: = ER*(2.58 $/MMBTU New RIL Gas Formula: (As per Press Reports) ER*2.74) =112.25}. − CP floor has been kept at 25 and CP cap at 60 Presently CP is greater than the ceiling and is not expected to come below 60 in the near future so the Brent crude linked component is likely to remain based on CP cap.28. based on revised formula {ER*2.7 . Thus. C =4 CP is the average price or Brent crude oil in US$/barrel for previous FY. If Platt’s Oil gram is no longer published.15 Fixed component Biddable component Brent crude linked component − C is the biddable component (a non zero positive integer) − Presently C has been kept at Zero with an option with Govt.5 + 41*1. Reliance Gas Price Original RIL Formula (as per GAIL-Term Sheet) 112. 2/MMBTU or $ 4. the total price is USD denominated whereas in the original formula there was a INR component and a USD component.7 =Rs 172. Also. since biddable component can again be introduced subsequently. the price can increase in future whenever such a review is under taken. Under the current exchange rate scenario.= 102.5 + 69.(see attached graph) .2 per MMBTU (This is the base Price @ USD=41 INR) Under the new formula. the new formula results in a lower gas price. the LNG price formula is Monthly LNG FOB Price = 1.2008.53/MMBTU upto 31. a)The price for period commencing from 1st January. The above price is subject to a floating ceiling and floor price linked to JCC price. The cap and ceiling to be computed as below: Floating Cap = (60-N)*20+(N*A60) ------------------------.+ 4 60 (60-N)*20+(N*A60) ------------------------.2009.12. JCC price would be the average of the preceding 12 months average leaving the last 3 months including the pricing month. increasing by 1 each month until it reaches 60 for December 2013 and remaining 60 thereafter for each month upto the end of the term of this Agreement. 2. Floating Floor = . In terms of the contract signed between PLL and Rasgas. the JCC price in the above formula would be a fixed price of $20/Bbl. A60 = the arithmetic average of JCC over the period of sixty month. 2009 shall be subject to a floating cap and ceiling. Accordingly the LNG FOB price is a fixed price of $2.90/15 * JCC.4 60 Where N = 1 for Jan. The main source of supply through HVJ network during 2009-11 would be from PLL (including capacity from 5 MMTPA to 10 MMTPA)..R-LNG Price for RLNG from PLL Dahej 1. However for the first five years ending 31st December 2008. 5 x (Henry Hub / Henry Hub p) + 0. 4. had quoted Alfa = 3.5 x (Fuel Oil / Fuel Oil p)) + [Beta].271 T (Off-shore tariff) = $1.proposed by Consortium. Fuel Oil: The yearly average of mean of FO 180CST 2% price under FOB Singapore published by Platt's Asia-Pacific / Arab Gulf Marketscan (one year period before each Recalculation Date). Fuel Oil p being this figure for 2006 ($ 328. Alfa and Beta: The figures which a bidder is requested to propose respectively for the determination of Pricing Formula applicable to sale and purchase of gas.67.34 & Beta = 1.9769 / mmbtu). where Henry Hub: The yearly average of closing price for prompt month Nymex futures for Natural Gas (one year period before each Recalculation Date).1588 / ton).1] P1 = Price on Well Head Basis.Myanmar Pipeline Bid Formula as given in the Pipeline Bid Price in $ / mmbtu (P) = [Alfa] x (0.042 / mmbtu. Henry Hub p being this figure for 2006 ($ 6.5(FY/F)+0. 100% floating with the formula . . OM (USA OM) & F (FO Singapore) equal to Yetaguna numerators on the day of GSA signing and the Numerators would be last 12 months averages as per Yetaguna formula. GAIL reviewed the affordable price level and based on final customer price of $ 7.2 (CPIY/CPI) + 0.2 / mmbtu in the eastern Indian market. Modified Yetaguna Price formula as applicable to PetroChina Price = (P1+T) * [0. whereas PetroChina has proposed T = $0.2(OMY/OM) + 0.8 / mmbtu Denominators CPI (USA CPI). 0 [ 0.036 for 1998 OM = 117.1 ] . k2 = weighted constant factor for Producer Price Index for Oil Tools Machinery (OM ) = 20 % OMy = PPI (Oil Machines Tools – USA) for last 12 months with 6 months lag k3 = weighted constant factor for Fuel Oil ( FO) = 50 % Fy = Singapore Fuel Oil (2% S 180 Cst) for last 12 months k4 = weighted constant factor for fixed part = 10 % CPI = 170.5 ( FY /15.2 ( CPlY / 170.0 US$ /MMbtu k1 = weighted constant factor for Consumer Price Index in the USA (CPI USA) = 20 % CPIy = CPI USA for last 12 months with 6 months lag.2 ( OMY / 117.5 US$ /BBl for 1998 Therefore normal price By is By = 3.036 ) + 0.5 ) + 0.711 for 1998 F = 15.Turkemenistan Petro China Price Formula Original Yetaguna Price formula By = P1 [ k1 ( CPIY / CPl ) + k2 ( OMY / OM ) + k3 ( FY / F ) + K 4 ] where P1 = base for normal price at mid 1998 = 3.711 ) + 0. .33 X Gn/Go) Pn = the calculated price in US dollars per 1000 m3.34 X Ln/Lo + 0. Gn = the arithmetic mean of the monthly prices for Gasoil Reg. Go = the base value.5% in US dollar per barrel. Ho = the base value. Ln = the arithmetic mean of the monthly prices for fuel oil with a viscosity of 180 CST. Lo = the base value. 0.33 X Hn/Ho + 0. which is the arithmetic mean of the monthly prices for HSFO 180 CST fuel oil. which is the arithmetic mean of the monthly prices for Gasoil Reg 0.Turkmenistan Pn = Po X (0.5% in US dollars per barrel. which is the arithmetic mean of the monthly prices for HSFO 380 CST fuel oil. at QH = 7950 kcal/m3 Po = base price in US dollars/1000 m3 Hn = the arithmetic mean of the monthly prices for fuel oil with a viscosity of 380 CST. 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