Drilling equipment near a Baltic port (4)
I believe the answer is:
riga
'baltic port' is the definition.
(capital of Latvia, a Baltic nation)
'drilling equipment near a' is the wordplay.
'drilling equipment' becomes 'rig' (I've seen this in another clue).
'near' says to put letters next to each other.
'rig'+'a'='RIGA'
(Other definitions for riga that I've seen before include "A rig in Latvia" , "European capital" , "Latvian capital" , "capital in Europe" , "Baltic port" .)