To Our Valued Customers:

As of July 1, 2010 the ISO 8217-2010 revision comes into effect as well as the reduction to 1% sulfur for North Sea/Baltic ECA’s. We believe the move to lower sulfur fuel combined with the lingering effects of the global recession on the supply side will cause potential for further deterioration in fuel quality.

 In summary, we believe the following conditions point to a higher potential for off-specification fuel and increased prices.

·      Over the last 3 years the percentage of a barrel of crude that falls to Residual Fuel Oil has moved downward from 16% to 9%.

·      Refiners remain under severe pressure to show better profits for stockholders, resulting in closure of refineries and a continued push for higher profit margin products.

·      Bunker demand will increase as world economies recover.

·      Crude tanker availability will be under pressure as single hull crude carriers are phased out and delays occur in new builds.

·      Increased movement by the product tanker fleet will be required to meet local demands as well as meeting supply requirements for 1% sulfur, thereby increasing the potential for quality issues.

·      Suppliers expect a 25%-40% potential price increase to meet ECA requirements

In regards to the ISO 8217:2010 standard, here is a summary of the changes from the previous revision:

·      Grade DMZ added to the distillate standard

·      Grade DMC has been reclassified as a residual fuel and is now known as RMA 10 grade

·      Grades RMA 30 and RMB 30 have been consolidated to a new Grade RMB 30

·      Grade RMF 180 has been deleted

·      Grade RMG has been expanded to 4 grades with 180, 380, 500 and 700 viscosity

·      Grades RMH 380 and RMH 700 have been deleted

·      Grade RMK has been expanded to include 500, in addition to the previous 380 and 700 viscosity

·      Sulfur content is now basis local standards

·      Lubricity specification added for distillates, applicable to clear and bright Diesel Fuels with a sulphur content below 500 mg/kg.

·      Oxidation stability specification added for distillates

·      Viscosity specifications have been increased for distillates

·      Ash limit has been lowered for all residual grades

·      Used Lube Oil (ULO) limits have been modified

·      Cat fines specification has been lowered

·      Vanadium limit has been lowered for all grades of residual and distillate fuels, with the exception of RMG 380 which goes to 350

·      Acid number and strong acid number limits added for both residual and distillate fuels

·      Total Sediment Potential, (TSP), has been changed to Total Sediment Accelerated, (TSA)

·      Sodium limit has been added to all residual grades

·      CCAI limit has been added to residual grades

·      A new limit on H2S goes into effect July 1, 2012 for both residual and distillate grades

·      Regarding Bio Fuels: Marine fuels shall be free from bio-derived materials other than “de minimus levels” (an amount of minimum importance) of FAME (Fatty Acid Methyl Ester)

We at Oiltest Marine Services feel that these changes, in conjunction with an effective sampling and testing programme, will provide and effective guard against fuel related problems for your vessels.

While adoption of the new standard is voluntary between suppliers and buyers, Oiltest Marine Services is fully prepared to analyse your fuels to whichever slate you designate.

 Oiltest Marine Services has added Sodium and CCAI to our standard test slate at no extra charge. If you would like to add any of the following tests to your current agreement, please contact us for a quotation:

Oxidation Stability, Lubricity, Acid/Strong Acid Numbers

Also, please let us know if you would like to have your fuels compared to the new standard. If you have any questions on the above information, please do not hesitate to contact us we will be back to you as soon as possible. Thank you.

Best Regards,

Wajdi Abdmessih                                Rob Leventhal

Wajdi Abdmessih                                                 Rob Leventhal

 Technical Director                                               Vice President, Sales and Marketing

Oiltest Marine Services                                        Oiltest Marine Services

Bulletin ECA Overview