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HMRC internal manual

Oil Taxation Manual

HM Revenue & Customs
, see all updates

PRT: valuation of crude oils and products - category 2 - Foinavon

Crude oil Reference price Period used to calculate differential Minimum volume for calculation of differential
Foinavon 212 pricing based upon the NDD*. Rolling average of all AL cargoes in the 3 month period up to and including the month of lifting. 3 standard volume (600k bbls) AL cargoes**.
  • Where a reference price is stated, this will be based upon LB Oil & Gas’s published daily Brent values, with effect from 1 July 2006.

** Should the volume in the specified period be too small, include additional cargoes until the minimum volume has been achieved. The cargoes to use are those nearest to the specified period on a time basis.

Nearest on a time basis means;

  • for cargoes preceding the specified period; in reverse date order
  • for cargoes following the specified period ; in date order.

A cargo with the shorter time difference between it and the specified period will be used in preference to a cargo with a larger time difference, regardless of whether that cargo follows or precedes the period.

In case there are two cargoes with equal time difference, include both as additional cargoes.