Norwegian marine fuels supplier Bunker Oil has secured a new four-year framework agreement with the Norwegian Defence Materiel Agency to supply fuel to the country’s naval and government vessels.
The contract took effect on 1 July after the previous agreement expired on 30 June.
Under the deal, Bunker Oil will supply fuel from its terminals and bunker tankers along the Norwegian coast, serving vessels operated by the Navy, Coast Guard, Coastal Ranger Command, Governor of Svalbard, Norwegian Coastal Administration, Institute of Marine Research and the Norwegian Defence Research Establishment, among others.
The agreement has an estimated value of NOK 1.2 billion-1.5 billion (about $118 million-$148 million) and is expected to support activity across Bunker Oil’s network of coastal facilities.
The company said its extensive infrastructure, including major facilities in Kirkenes, Båtsfjord, Honningsvåg, Hammerfest and Tromsø, was a key factor in securing the contract as Norway increases naval activity in its northern waters.
Fuel deliveries under the agreement will range from small volumes for patrol craft to several hundred cubic metres for larger naval vessels. Bunker Oil also expects to supply fuel to new vessels as the Norwegian Navy renews its fleet.
“The Norwegian Defence Materiel Agency places many and very strict requirements on its suppliers,” said Tore Slinning, contract manager at Bunker Oil.
He added: “We look forward to four more years as a supplier of fuel to the Norwegian Defence Materiel Agency. The agreement is of great importance to Bunker Oil, in addition to the fishing fleet, which is still by far our largest and most important customer group.”
