Equinor and ORLEN Sign Three-Year Norwegian Crude Supply Deal

Norwegian energy company Equinor has entered into a three-year supply contract with Poland's ORLEN to provide crude oil from the Johan Sverdrup field. This marks a strengthening of their existing partnership that extends to natural gas, LNG, and renewable energy. The agreement, set to commence in September, anticipates annual deliveries ranging from 5 million to over 9 million tonnes of crude oil.

ORLEN could potentially receive up to one-quarter of its annual oil needs from Norwegian crude at the contract's peak, as detailed by ORLEN. The crude will be delivered to ORLEN refineries situated in Poland, Lithuania, and the Czech Republic, offering the Central European refiner a stable crude oil supply amid ongoing diversification in energy sources across the region.

Johan Sverdrup is acknowledged as the largest crude-producing field on the Norwegian Continental Shelf, and it has gained significance as a low-emission crude oil source due to its electrified production. This deal bolsters Norway's strategic standing in European energy markets, particularly considering the substantial decline in Russian oil and gas deliveries to the region over recent years.

Prior to this, Equinor has been collaborating with ORLEN across various sectors including gas pipeline supply, LNG delivery, and both Polish renewable energy projects, including offshore wind initiatives via Polenergia and onshore wind, solar, and battery storage projects through its subsidiary Wento. For ORLEN, this crude oil arrangement provides enhanced supply predictability in the face of persistent global oil market uncertainties, while concurrently establishing Equinor as a substantial long-term customer for the oil extracted from Norway's premier oilfield.