RIM Crude/Condensate Intelligence Daily

Transcription

1 RIM Intelligence Daily RIM CRUDE/CONDENSATE INTELLIGENCE DAILY NO.5304 Oct COPYRIGHT(C) 2016 CO. ALL RIGHTS RESERVED. --TOKYO, 15:30 JST Oct <Assessment Closing Time> Notice RECX-22 index for Monday was at 75.98, up 0.84 points Starting Oct 15, 2013, Rim Intelligence Co began publishing an in-house developed index to be applied as a broad-based economic indicator. Known as the RIM Energy Composite Index or RECX-22, the index is derived from daily price assessments of crude oil, petroleum products, LPG, LNG and a wide range of petrochemicals. The basis for the index, 100, was formed on data sets from [RIM Reports] *Please click on the following links to see samples of each type of report: Samples are not today's issue: Bunker LPG LNG Petrochemical Products RIM Data File Petrochemical Data RIM Website (Chinese Ver.)

2 TOKYO SPOT CRUDE ASSESSMENTS (24Oct16) --Cash Crude Nov Dec Jan Feb Mar WTI BFO JPN DTD** Dubai Spreads Nov Dec Jan Feb Mar WTI/BFO / / / / / BFO/Dubai / 2.47 / / / / 4.18 Oman/Dubai / 0.28 / / / / 0.28 Intermonth Spreads Nov/Dec Dec/Jan Jan/Feb Feb/Mar Mar/Apr BFO / / / / / Dubai / 0.20 / / / / Oman* / / / / / 0.02 *Intermonth spreads of Oman is premium/discount to OSP. **JPN DTD refers to JPN Dated Brent, or Dated Brent assessed by RIM at 15:30 Tokyo time. --Paper Crude Oct Nov Dec Jan Feb Dubai DME/Dubai 0.27 / / / / / 0.26 Murban swp 2.25 / / / 2.50 / / JPN DTD/Dubai / 2.03 / / / / 2.87 *DME/Dubai is the spread between DME Oman swap and Dubai swap. --Singapore Crack Margins (Against Dubai Crude Oil, in $/bbl) (21Oct16) Nov Dec Jan Naphtha Jet Gasoil FO 180cst FO 380cst Singapore Crack Margins (Against DTD Brent Crude Oil, in $/bbl) (21Oct16) Nov Dec Jan Naphtha Jet Gasoil FO 180cst FO 380cst Physical Crude (Middle East) --December-- Outright value Premium Dubai* / Oman / 0.09 Oman* / Murban / Das / Upper Zakum / 0.48 Qatar Land / 0.28 Qatar Marine /

3 Al Shaheen* / 0.28 Arab Medium** / 0.33 Basrah Light / 0.48 Basrah Heavy / 1.08 D.F.Condensate* / 3.60 L.S.Condensate* / South Pars* / 0.03 Masila*** / 1.05 Marib Light*** / January-- Outright value Premium Dubai* / Oman / 0.09 Oman* / *Premiums for Dubai, Oman, Al Shaheen and D.F.Condensate, L.S.Condensate, South Pars are over Dubai quote. **Premium for Arab Medium is over Aramco formula for Arab Medium. ***Premiums for Masila and Marib Light are over DTD Brent. -Premiums for all other grades are over each OSP. -D.F.Condensate is Deodrised Field condensate. --OSP Calculations (Middle East) --November-- Outright value Arab Super Light Arab Extra Light Arab Light Arab Medium Arab Heavy Basrah Light Basrah Heavy Kuwait Blend Iranian Light Iranian Heavy OSP Calculations are expected values of OSPs to be applied in the following month and are calculated based on the latest available price formulas set by oil producers and prices of Dubai and Oman crudes. --Physical Crude (Africa) --December-- Outright value Premium Bonny Light* / 0.05 Brass River* / Qua Iboe* / 0.55 Agbami* / Cabinda* / Djeno* / Girassol* / 0.10 Hungo* / Nemba* / Dalia* / Pazflor* / Zafiro* / Doba* / Nile Blend** / 3.20 Dar Blend* / * All premiums are over DTD Brent. ** Premium is over Minas ICP on FOB basis. --Physical Crude (Other) --December-- Outright value Premium 2

4 Sokol* / Sakhalin B* / ESPO** / Azeri*** / 3.05 Urals**** / 1.20 Forties**** / 2.40 Castilla B***** / *Premiums for Sokol and Sakhalin B are over Dubai quote on CFR Yosu. **Premium for ESPO is over Dubai quote on FOB Kozmino. ***Premium for Azeri is over DTD Brent on CFR South East Asia. ****Premiums for Urals and Forties are over DTD Brent on CFR North East Asia. *****Premium for Castilla B is over Dubai quote on CFR North East Asia. --Physical Crude (Asia) --December-- Outright value Prem.(vs ICP) Prem.(vs JPN DTD) Minas / / Cinta / / Widuri / / Duri / / Lalang / / Handil Mix / / Attaka / / Belida / / Ardjuna / / Arun Con / / Walio / / Senipah Con / / Indonesian Crude Basket Prices-- Indonesian Light Crude Basket Price Indonesian Medium Crude Basket Price Indonesian Medium-Heavy Crude Basket Price Rim Special Crude Basket Prices-- Crude Basket Price for China Products* *The average price of Dubai, DTD Brent, Cinta, to which the Chinese government refers when adjusting domestic retail prices for refined products. --December-- Outright value Premium Tapis* / 3.40 Labuan* / Kikeh* / Miri* / Kimanis* / Cendor* / Gippsland* / 0.45 Mutineer Exeter* / 2.50 Cossack* / 1.85 NWS Con* / 0.55 Laminaria* / 0.45 Varanus* / 1.60 Kutubu* / 1.70 Daqing** / 0.40 Enfield* / 2.50 Vincent* /

5 Pyrenees* / 2.15 Van Gogh* / 1.40 Bach Ho Light* / 3.25 Bach Ho Heavy* / 2.20 Rang Dong* / 2.25 Su Tu Den* / 2.45 T.G.T.* / 2.70 Chim Sao* / 3.00 *Premiums are over DTD Brent. **Premium for Daqing is over OSP. --OSP Calculations (Asia) --October-- Outright value Seria Light Champion OSP Calculations are expected values of OSPs to be applied in the current month and are calculated based on the latest available price formulas set by oil producers and prices of JPN DTD. NYMEX WTI CRUDE FUTURES (21Oct16) Dec Jan Feb Mar Settle Change Open High Low Estimated Volume: 978,061 Open Interest(Oct 20): 1,784,870 ICE BRENT CRUDE FUTURES (21Oct16) Dec Jan Feb Mar Settle Change Open High Low Weighted avg Estimated Volume: 676,582 Open Interest(Oct 20): 2,227,357 TOCOM MIDEAST CRUDE FUTURES (24Oct16) (Yen/kl) Oct Nov Dec Jan Feb Mar Change Volume ,993 Open 32,100 31,940 32,090 32,290 32,560 32,890 High 32,100 32,010 32,100 32,360 32,620 32,930 Low 32,050 31,870 31,990 32,260 32,520 32,770 Settle 32,080 31,950 32,090 32,300 32,590 32,910 Open Interest(Oct 21): Short=168,322/Long=168,322 1lot = 50kl Exchange rate: TRANSACTIONS REPORTED ON THE DAY North Sea/Africa/Russia crude/condensate (Oct 21) Dec Sokol: Trafigura to end-user in China at Dubai quotes + above $4.5/bbl (700kb) Dec ESPO: Gazprom to P&C at Dubai quotes + above $3.4/bbl (740kb) Dec to Jan Sakhalin Blend: Sakhalin Energy to end-user in South Korea at Dubai quotes + mid to high $2/bbl (730kb), Sakhalin Energy to end-user in Japan at mid to high $2/bbl to Dubai quotes 4

6 Middle East crude/condensate (Oct 21) Dec Oman: P&C to CPC at undisclosed price (1,000kb) Dec Das: P&C to Asian end-user at OSP +15/+20cts/bbl Dec Upper Zakum: Phillips 66 to Shell at fixed prices (500kb), Chevron to Shell at Dubai quotes +10cts/bbl, P&C to CPC at undisclosed price (1,000kb) Dec L.S.C.: TASWEEQ to P&C at Dubai quotes +$2.40/+2.60/bbl, TASWEEQ to North East Asian end-user at Dubai linked price Asia-Pacific crude/condensate (Oct 21) Dec Senipah condensate: Total to P&C at ICP + $1.8/$2.0/bbl ( kb), Total to P&C at ICP + $1.8/$2.0/bbl ( kb) Dec Chim Sao: PV Oil to UNIPEC at DTD+ around $3.2/bbl (300kb), PV Oil to UNIPEC at DTD +$2.5 to +$3.2/bbl (300kb) MARKET COMMENTARY Benchmark Crude Summary, Oct The front-month December Brent crude oil futures contract in electronic trading on the Intercontinental Exchange (ICE) as of 15:30 Tokyo time on Monday rose by 30cts/bbl from the same time the previous day at $51.62/bbl. The market was lifted by growing hopes of production curbs by main oil producers. The November Dated Brent price, the benchmark for regional and arbitrage grades, as of 15:30 Tokyo time was down 33cts/bbl from the previous day at $51.67/bbl. Meanwhile, the Dec contract for DTD to Front Line (DFL) hovered at around to minus $1.50/bbl. was up 13cts/bbl at $50.63/bbl. Meanwhile, looking ahead to trade in Brent, Toshitaka Tazawa at Tokyo-based commodity broker Fujitomi forecast the front-month contract to hold in the $50-53/bbl range. With it still unclear as to exactly what producing nations will do with regard to a freeze on output, market players are likely to take up a wait-and-see stance for the near term, Tazawa said. The December Dubai paper, the benchmark price for Middle Eastern crude grades and Far East grades, strengthened by 33cts/bbl from the same time the previous day at $49.12/bbl. In the trade of inter-month spreads, the Dec/Jan spread was offered at minus 52cts/bbl. In the trade of Brent/Dubai EFS spread, the Dec contract was offered at $2.55/bbl. The Dec WTI contract, the benchmark crude for US and South American crude, MIDDLE EAST CRUDE/CONDENSATE Market Summary 5

7 Flat prices for December-loading Middle Eastern crude grades firmed from late last week, reflecting a firm trend in the benchmark Dubai papers. Flat prices of Abu Dhabi Das rose more than other grades in line with the widening premium to OSP. In December-loading floating based trade linked to Dubai and OSP, spot differentials for Das widened. Demand/supply fundamentals briefly tightened in the final trading cycle. Abu Dhabi spot Dec Das rebounds on tight supplies Spot differentials for December-loading Abu Dhabi Das were quoted at a premium of 15-20cts/bbl to OSP, up 10cts/bbl from late last week. With December trade entering a final cycle, a few end-users moved to procure additional avails. Amid limited uncommitted avails, sellers raised offers. One cargo of Das was sold to an end-user in Japan late last week. The details about the seller were unknown but the cargo was done at a premium of 15-20cts/bbl to OSP. Shell buys two cargoes of Dec Upper Zakum In the trade of other December-loading Abu Dhabi grades, Royal Dutch Shell purchased two cargoes of Upper Zakum in the Singapore market last Friday. Of these, US Philipps 66 sold one cargo. The deal was done after 20 lots of physical Dubai partials, each 25,000bbl, were sold at fixed prices and Upper Zakum was declared for Dubai. US Chevron sold the remaining one cargo at a premium of 10cts/bbl to Dubai quotes. The September-loading OSP for Upper Zakum was earlier settled at a discount of 53cts/bbl to Dubai quotes. The September OSP was equivalent to a premium of 69cts/bbl to Dubai quotes, though the comparative months differed. But the next October-loading OSP for Upper Zakum is forecast to be raised against Dubai quotes, according to an oil refiner in China, thus the premium of 68cts did not reflect the December market. Abu Dhabi Term ADNOC resists reducing Jan-Jun Murban offer Abu Dhabi National Oil Co (ADNOC) in the United Arab Emirates (UAE) was now working on talks for the January to June period in 2017 with its term contractors for Murban as reported. The current July to December price with destination free Murban cargoes was set at a premium of 20cts/bbl to OSP. Term contractors requested ADNOC to reduce the term price to a single digit premium to OSP for the January to June period, citing loosening demand/supply fundamentals for overall light grades as reported. On the other hand, it seemed ADNOC insisted to keep at least the current price or a premium of 20cts/bbl to buyers. ADNOC appears to maintain a bullish marketing stance, citing smaller export scope as ADNOC would continue to inject Murban to its 416,000 barrels per day (b/d) Ruwais refinery in Abu Dhabi. Price ideas from both the seller and buyers are still far apart, so that the term talks did not make remarkable progress, said a Japanese trading house source. 6

8 Tenders CPC procures Oman and Upper Zakum In tender related news, Taiwan s CPC Corp was said to have procured a total of 2.0 mil bbl of Middle Eastern sour grades in its December-loading sour crude buy tender closed on October 20. The details about the seller and the prices were unknown at this stage, but CPC apparently purchased Oman and Abu Dhabi Upper Zakum, each 1.0 mil bbl. Meanwhile, Taiwan s Formosa Petrochemical (FPCC) was highly likely to skip its sour crude buy tender for December-loading. A few market sources believed that FPCC was boosting intakes of Iranian grades through a term contract, which would limit the scope to buy spot cargoes. Condensates Dec L.S.C. weakens, rising avails drag Spot differentials for December-loading Qatari Low Sulfur Condensate (L.S.C) were quoted at a premium of $ /bbl to Dubai quotes, down 27cts/bbl from late last week. Rising supplies weighed on the market. Qatar International Petroleum Marketing Co (TASWEEQ) was originally believed to sell only one cargo of L.S.C. via its December-loading tender but it turned out that three spot cargoes were actually sold. Two cargoes were done in pre-tender negotiations while one cargo was done in the tender. The prices of these three cargoes were at premiums in the wide range of $ /bbl to Dubai quotes. It was not clear which cargo, either a premium of $3.2/bbl or a premium of $2.4/bbl, was the last deal, but all of these cargoes were done from early to middle of last week, and prices may have varied, depending on the loading dates or buyers. In any case, the current tradable levels for L.S.C. were believed to be in line with these traded levels. Dec DFC remains high on extremely tight avails Meanwhile, the market for Qatari Deodorized Field Condensate (D.F.C) kept a strong trend in the wake of a sense of extremely tight supplies. The D.F.C. market was not influenced by a slide in L.S.C, so that it is reasonable to believe that the gap between the two condensates was widening, said a trader in Singapore. Oman Dec Oman premiums shrink 7

9 Spot differentials for December-loading Oman were quoted at a premium of 29-34cts/bbl to Dubai quotes, down 12cts/bbl from late last week. In the Dubai Mercantile Exchange (DME), the benchmark for the Oman market in the OTC market, December Oman values as of Friday evening retreated to a premium of about 31/bbl to Dubai quotes. As of 16:30 Tokyo time on Monday, the December contract was bid at 49.40/bbl, countered by an offer at 49.55/bbl. AFRICAN/EUROPEAN/RUSSIAN/AMERICANS CRUDE/CONDENSATE Market Summary Flat prices of November- loading and December West African, Russian, North Sea, Latin grades strengthened from the previous day in line with a fall in the benchmark Dated Brent and Dubai prices. In floating based trade linked to Dated Brent and Dubai, spot differentials for December-loading Sakhalin Blend narrowed. Meanwhile, in the trade of US crude for Asia, it turned out that a partial cargo was placed to an end-user in Thailand for December arrival. ESPO ESPO premiums widen further Spot differentials for December-loading for East Siberian ESPO Blend strengthened to a premium of $ /bbl to Dubai quotes, up 20cts/bbl from late week. Healthy demand from end-users in China helped lift the market. West African grades such as Angolan grades were sensed as overvalued for end-users in China due to a hike in freight rates, which triggered active buying for ESPO as reported. In addition, a few market sources pointed out that end-users in China normally preferred to take ESPO with low pour point in winter. Pipelines in northern China tends to be frozen in winter, thus ESPO with pour points of minus 30 would be more suitable to be handled. Russian oil firm Gazprom sold one cargo. The buyer of the cargo was unknown, but the cargo was done at a premium of slightly wider than $3.4/bbl to Dubai quotes. Meanwhile, the cargo for loading sold by Russian producer Rosneft to ChemChina as reported appeared to be done at a premium of around $3.7/bbl to Dubai quotes. Sakhalin Trafigura sells Dec Sokol at above $4.5 Spot differentials for Sakhalin Sokol for December-loading edged higher at a premium of $ /bbl to Dubai quotes, up 5cts/bbl from late last week. Supplies for December-loading were lower than normal months due to production issues, while demand was healthy. European Trafigura sold one 700,000bbbl cargo to an end-user in China. The cargo was believed to be at premiums in the range of /bbl to Dubai quotes. Meanwhile, US ExxonMobil closed its sell tender for one cargo of Sokol on Monday. Though potential demand for December Sokol remained healthy, December trade was delayed as the final loading dates were still not finalized yet. ITOCHU Corp and Japan Petroleum 8

10 Exploration Co (JAPEX) still had one cargo each to sell on the spot market. General and an end-user in South Korea seen as GS Caltex were cited. Sakhalin Energy sells all of five cargoes Spot differentials for Sakahlin Blend for December loading firmed to a premium of /bbl to Dubai quotes, up 15cts/bbl from late last week. Crack spreads for naphtha in Asia showed signs of recovering, while tight avails for rival Sakhalin Sokol supported the market. Sakhalin Energy sold all of its projected five cargoes including one 730,000bbl cargo for 8-14 loading via its tender as reported. Those cargoes were heard done at premiums of md to high $2/bbl to Dubai quotes. For buyers, end-users in Japan such as Tonen ASIA PACIFIC CRUDE/CONDENSATE CRUDE/CONDENSATE Market Summary Flat prices for December-loading regional grades strengthened except for Malaysian light grades in line with gains in Dated Brent and ICP prices. In December-loading floating based trade linked to Dated Brent and ICP, Malaysia s light grades weakened. Meanwhile, Indonesian condensates softened. In the trade of December-loading Vietnamese grades, more information about a sell tender for Chim Sao emerged. Malaysia Kimanis tender: highest bid at DTD + mid-$3/bbl Spot differentials for December-loading Malaysia s Kimanis were quoted at a premium of $ /bbl to Dated Brent, down 35cts/bbl from late last week. End-users already procured necessary avails under term contracts and so on, thus potential buyers in the spot market were limited. Brunei s state-owned Petroleum Brunei closed its sell tender for a 600,000bbl cargo for 5-9 loading. The tender was not officially awarded but the highest bid was heard at a premium of mid-$3/bbl to Dated Brent. The cargo was likely to be awarded at the bid level. Condensates 9

11 Dec Senipah condensate done at ICP + below $2 Spot differentials for December-loading Indonesia s Senipah condensate softened to a premium of $ /bbl to ICP, down 15cts/bbl from late last week. Potential buyers for the condensate were originally limited, while spot supplies increased from the previous month. Spot avails for December-loading increased to two partial cargoes, compared with one cargo for November-loading. French Total and ITOCHU Corp sold one cargo each. The identities of the buyers were unknown at this stage, but those cargoes were awarded at premiums of slightly narrower than $2/bbl to ICP. An end-user in South Korea, a regular buyer for the condensate, did not secure the Dec cargoes as the company already procured arbitrage condensates such as a cargo from Africa. Term sell tender for Bayu Undan planned next week US Conoco Philipps plans to a sell tender for East Timor s Bayu Undan from January 2017 onward. In February to November loading in 2016, European Trafigura took three term cargoes while China International United Petroleum & Chemical Co (UNIPEC) secured four term cargoes. UNIPEC took the term cargoes at a premium of $2.6/bbl to Dated Brent, while Trafigura took the cargo in line with NWSC values. Meanwhile, there was no supply in Bayu Undan for December loading. This was because of the loading schedule and production itself did not fall. Gorgon condensate quality close to Bayu Undan In the Gorgon LNG project in Australia, the first cargo was scheduled to be shipped in early December as reported. US Chevron, the operator, was not offering the cargo on the spot market. If the cargo is offered on the spot market, the cargo would be done at a lower price than the fair values in the wake of the first cargo. Gorgon condensate has an API gravity of degrees, heavier than the similar Australian NWSC. The condensate has a higher content of paraffin and a lower content of aromatics than NWSC, thus the quality is seem more close to Bayu Undan. Vietnam Chim Sao done at DTD + mid-2 to low-$3/bbl Spot differentials for December-loading Vietnamese Chim Sao were assessed at a premium of $ /bbl to Dated Brent, unchanged from late last week. Vietnam s state-owned PV Oil sold three cargoes, each 300,000bbl, for 1-5, and loading in its tender closed on October 20 as reported. It later turned out that one of these cargoes was awarded at a premium of mid-$2/bbl to Dated Brent while the remaining two cargoes were done at a premium of around $3.2/bbl to Dated Brent. Of the three cargoes, two cargoes were sold to UNIPEC as reported. Thang Long sold to South Korean end-user PV Oil sold a 250,000bbl cargo of Thang Long for 1-5 loading in its sell tender closed on October 18 as reported. It later was unveiled that the cargo was sold to an end-user in South Korea seen as SK Energy. The cargo was awarded at a premium of mid-$2/bbl to Dated Brent as reported. 10

12 Bunga Kekwa, Bunga Orkid sell tenders issued PV Oil issued December-loading sell tenders for Bunga Kekwa and Bunga Orkid, each 300,000bbl. It offered Bunga Kekwa for loading while the Bunga Orkid was for 1-7 loading. Both of the tenders will close on Thursday, with validity until November 2. For November-loading, Bunga Kekwa was awarded at a premium of mid-$2/bbl to Dated Brent while Bunga Orakid was done at a premium of high $2/bbl to Dated Brent. RIM Trading Board In the trade of the Rim Trading Board as of 15:30 Tokyo time on Friday, BP Singapore offered a physical 100,000bbl cargo of Dec-loading Attaka at $2.95/bbl below Dec ICE Brent. The major at the same time bid for Dec Attaka/Ardjuna paper spread at $3.85/bbl. Meanwhile, Petro Diamond bid for Dec Attaka/Senipah condensate, each 50,000bbl, at $2.90/bbl. In addition, Glencore Singapore bid for Dec Attaka/Minas paper spread, 50,000bbl, at $3.15/bbl. NYMEX Crude Market on Oct 21 NYMEX crude futures rebounded on Friday, boosted by hopes that main oil producers would work on freezing output. The November contract ended up 22cts/bbl from the previous day at $50.85/bbl. Russia s Energy Minister Novak said that he would visit Saudi Arabia in the weekend and would propose a plan to stabilize the oil market. Before the visit, Novak reportedly said that it is necessary for main oil producers to freeze output to stabilize the market. The remarks raised hopes of production curbs by the Organization of the Petroleum Exporting Countries (OPEC) and Russia. But Russia plans to produce mil barrels per day (b/d) of oil, the record high level after the dissolution of the Former Soviet Union. The factor, along with an increase in US rig count, capped the upside in crude futures. US Bake Hughes announced that the number of US drilling rigs in the week ended Oct 21 totaled 443 units, up 11 from the previous week. North Sea Brent crude on ICE also bounced back. The December contract was at $51.78/bbl, up 40cts/bbl from the previous day. In the NYMEX product market, the November heating oil contract was up 1.44cts/gallon at cts and the November RBOB contract was up 3.77cts/gallon at cts. MARKET NEWS Singapore crude oil throughput at 1.25 mil b/d, unchanged on week Combined crude oil throughput in Singapore was at 1.25 mil b/d, unchanged from a week earlier, according to a survey conducted by RIM, Oct 21. The current level puts utilization at 89.7% of the country s total refining capacity of 1.39 mil b/d. Shell ExxonMobil SRC Total Capacity 500,000 b/d 605,000 b/d b/d 1,395,000 b/d Oct % % % 89.7 % Sep % % % 89.7 % 11

13 Sep % % % 91.1 % Sep % % % 91.1 % Editorial and Subscription Inquiry: [Tokyo office] Tel:(81) , Fax:(81) , info@rim-intelligence.co.jp [Singapore office] Tel:(65) , Fax (65) , [Beijing office] [Indian office] hagimoto@rim-intelligence.co.jp Tel:(86) , Fax:(86) , guanhong@rimbj.com Tel:(91) , [Shanghai office] Tel:(86) , kamlesh@rim-intelligence.co.jp rim_sh@rim-intelligence.co.jp Rim reports are available via internet No portion of the reports may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed not only to parties outside the organization of the subscriber but also to other departments or branch offices within the same organization as the subscriber. While information in the reports is expected to be accurate, RIM bears no responsibility for any consequences arising from the subscriber's use of such information. Further, if events beyond our control such as natural disasters or unforeseen circumstances are to occur or likely to occur, giving rise to operational problems, publications may be halted temporarily. (C) 2016 CO. 12