USER GUIDELINES(JOF BARGE)

USE OF J-OIL EXCHANGE PTE LTD FOR JAPAN OIL FORWARDS (BARGE JOF BARGE) TRADING

J-OIL EXCHANGE PTE LTD (JOX) JOF BARGE trading aims to facilitate Internet-based physical trading transactions of petroleum products, based on “JAPAN OIL FORWARDS (JOF BARGE)” contract. The basic specifications of transactions conducted through the JOX trading system for JOF BARGE trading are as follows:

1)Products:

Gasoline(0.001% Sulphur), Kerosene, Gasoil (0.001% Sulphur), AFO 0.1(LSA), AFO 1.0, HSCFO (3.0% Sulphur)
*Details are as per JOF BARGE Contract

2)Quantity:

Transactions conducted through the JOX systems are as follows
*Each transaction on the JOF BARGE system may be in single or multiple lots of the following sizes.

　　　　　　　　

3)Price:

The unit of measurement of price is in Japanese Yen (Yen) per kilolitre

Please note that Gasoline prices quoted exclude the Japanese Gasoline tax of 53,800Yen per kilolitre,
and the Japanese gas oil tax of 32,100Yen per kilolitre respectively.

4)Pricing Methodology:

JOX trading system provides 2 “trading halls” for JOF BARGE Trading,
“JOF BARGE Fixed” and “JOF BARGE Floating”.

JOF BARGE Fixed
A price used in “JOF BARGE Fixed” transaction hall is always an actual figure which is F.F. (Fixed and Flat) basis.
A transaction on JOF BARGE Fixed basis is concluded only when a buyer and a seller agreed upon commodity, delivery period, and the price.

JOF BARGE Floating
A price used in “JOF BARGE Floating” transaction is based on a monthly average of the means of Japan domestic spot market covering Barges FOB refinery/primary storage Tokyo Bay or West Japan basis as determined by RIM Intelligence Co. plus a fixed premium/discount. A transaction on JOF BARGE Floating basis is concluded only when a buyer and a seller agree upon commodity, delivery period, Monthly Averaging Period, and fixed premium/discount.

The minimum premium/discount in a JOF BARGE Floating transaction is 10Yen, and can only increase or decrease in increments of 10Yen.

Rim Average Price used for JOF BARGE Floating transactions is calculated as below: All Rim average prices will be rounded off to the nearest whole number.

If the first decimal place is five (5) or greater, the first digit will be rounded up to the nearest digit. For example, 125.5Yen will be rounded up to 126Yen.

If the first decimal place is less than five (5), the first digit will be rounded down to the nearest digit. For example, 125.4Yen will be rounded down to 125Yen.

5)Delivery Period:

For each product listed above, JOX trading system will provide the trading period of seven (7) forward months. The trading of JOF BARGE period will close at the 25th of every month of the current delivery month (if this day is not a business day, a trading in the Delivery Month will usually expire on the business day preceding the 25th of the current month.)

6)Trading Commodities:

JOF BARGE trading in JOX trading system is for a physical trading transaction, and each delivery shall be made in the Delivery Period on FOB Tokyo Bay basis or West Japan basis. Details are in accordance with JAPAN OIL FORWARDS (JOF BARGE) contract by GINGA.

7)Concluding contracts (function available on JOF BARGE Fixed only):

Firm Offers / Bids
If you post a firm bid to buy and a counterparty posts an identical firm offer to sell, a contract is formed between you and that counterparty. This contract is formed without any further act on your part or the counterparty.

8)Credit line:

Each party has to set the limit of credit for each counter party.

9)Support Office:

10:00-17:00 (Japan time)

10)Others:

JOX will send the recaps (deal confirmation form) to both the selling party and the buying. This recap is a service provided to the parties remind them of transactions concluded through the JOX trading system. The formal contract containing all the necessary terms and conditions shall be made between seller and buyer at a later time to be mutually agreed.