S Korea's GS Caltex buys Norwegian Johan Sverdrup oil from Equinor, sources say


S Korea's GS Caltex buys Norwegian Johan Sverdrup oil from Equinor, sources say

South Korean refiner GS Caltex has bought 2 million barrels of Norway's Johan Sverdrup crude for delivery in March, several trade sources said, likely its first purchase of the grade in years.

The opportunity to buy the Norwegian oil came after Middle East benchmark Dubai strengthened and narrowed its gap against Brent, making Atlantic Basin grades cheaper for Asia.

Equinor EQNR sold the Johan Sverdrup crude cargo to GS Caltex, the sources said. One of them said the cargo was sold at a premium of $2 a barrel to dated Brent on a cost-and-freight basis.

The companies typically do not comment on commercial deals.

The South Korean refiner was the first to purchase the crude from Norway's Johan Sverdrup field in 2021 when it started production.

Johan Sverdrup oil can be used to replace medium-sour grades from the Middle East, another of the sources said.

Supply of these Middle Eastern grades tightened in recent months after Totsa, the trading arm of French energy major TotalEnergies TTE, snapped up cargoes, traders said.

Source: Reuters

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