OREANDA-NEWS. March 13, 2017. Shell has amended the terms of its Suko-90 contract, which governs forward trade in North Sea benchmark crudes, to allow for the delivery of Norwegian Troll crude in the settlement of North Sea forward contracts.

Price reporting agency Platts said last month it was adding Troll to the four grades it uses in assessing Dated Brent — its equivalent to Argus' North Sea Dated benchmark. Shell's amendment suggests the market is prepared to accept the addition.

Under the amended contract, the holder of North Sea forward contracts amounting to 600,000 bl for a given month will be entitled to the delivery of a physical cargo of either Brent, Forties, Ekofisk, Oseberg or Troll crude.

A quality premium attached to Ekofisk and Oseberg cargoes ensures the two grades are regularly used to settle such contracts — despite being of a significantly higher quality than Brent or Forties. Troll crude is generally priced even higher still, but no quality premium has been attached to the grade. It is unlikely therefore that cargoes of Troll will be used in settling North Sea forward deals.