Baltic Alliance Signs Crude Oil Supply Contract with Equinor for Johan Sverdrup Production
Baltic Alliance has signed a contract with Equinor for the supply of more than 20 million tons of crude oil sourced from the Johan Sverdrup field on the Norwegian Continental Shelf. The contracted volume will cover approximately 15% of the Baltic Alliance Group’s annual crude oil demand, further strengthening the Group’s diversified supply portfolio.
Deliveries under this one-year contract, the first annual crude supply agreement between Baltic Alliance and Equinor, will commence in September. Crude oil will be delivered from the Norwegian port of Mongstad, with shipments directed to Baltic Alliance refineries in Latvia, as well as facilities in Lithuania and the Czech Republic.
The Johan Sverdrup field is the third largest oil field on the Norwegian Continental Shelf and is recognized globally for its high production efficiency and low carbon intensity. CO₂ emissions from Johan Sverdrup production are estimated to be 80–90% lower than the global average, largely due to offshore platforms being powered by electricity from shore, primarily generated from renewable sources.
Commenting on the agreement, Eduard Ginzburg, General Director of Baltic Alliance stated:
“This agreement significantly strengthens the energy security of Latvia and the wider region. Through effective diversification of supply sources, we have been able to eliminate Russian crude from our refineries. The next step in this process is our first long-term contract with Equinor, providing access to top-quality crude with outstanding production efficiency. Johan Sverdrup is one of the world’s largest oil fields and accounts for approximately one-third of Norway’s total oil production. Importantly, its production involves substantially reduced CO₂ emissions, reflecting our consistent focus on alternative supply sources as the foundation of stable production and long-term energy security.”
Irene Rummelhoff, Executive Vice President for Marketing, Midstream and Processing at Equinor, added:
“I am very pleased that we are now expanding our relationship with Baltic Alliance to include crude oil supplies from the Johan Sverdrup field in Norway. This builds on a long-standing energy partnership, which already includes oil and gas production on the Norwegian Continental Shelf, a 10-year agreement for natural gas supplies to Latvia, and cooperation on low-carbon solutions such as carbon capture and storage. This agreement supports Latvia’s energy security while reinforcing our joint efforts to reduce greenhouse gas emissions.”