Equinor Canada Ltd. has signed a head of agreement with BW Offshore, confirming its selection as the preferred bidder for the floating production, storage, and offloading (FPSO) unit for the Bay du Nord deepwater oil project offshore Newfoundland and Labrador, Canada. The agreement advances plans to finalize the design of the specialized FPSO for Canada's first deepwater oil project.

Project Details and Location

Equinor operates Bay du Nord in partnership with BP plc. The project holds an estimated 400 million barrels of recoverable light crude in its initial phase. The oil discovery lies in the Jurassic reservoirs of the Flemish Pass basin, located approximately 500 kilometers east of St. John's in 1,170 meters of water. Later discoveries and potential tie-ins are situated in adjacent exploration licence EL1156, including Cappahayden and Cambriol, in waters about 650 meters deep.

The FPSO will be designed to accommodate future tiebacks, allowing for additional developments.

Production Capacity and Technical Specifications

The FPSO unit is expected to support production of up to 160,000 barrels per day of oil. The facility will be specifically tailored for the harsh sub-Arctic environment, featuring a disconnectable turret system and extensive winterization capabilities. The topside will incorporate multiple emission reduction initiatives, including high-efficiency power generation and heat recovery systems, variable speed drives, and a closed flare system.

These advanced environmental measures are designed to operate effectively in the challenging sub-Arctic conditions.

Development Timeline and Current Status

Development of the Bay du Nord project was postponed in 2023 for up to three years due to “changing market conditions and subsequent high cost inflation,” according to Equinor. Despite this delay, Equinor and BP have continued to advance work to mature the project for future development phases actively. Under the newly signed head of agreement, Equinor and BW Offshore will continue advancing discussions on all technical and commercial aspects of the FPSO project.

These discussions include further maturation of design through front-end engineering design (FEED) work and reaching an agreement on a commercial solution. Following the completion of the pre-FEED scheduled for mid-September, the two companies are expected to enter a bridging phase to prepare for FEED in early 2026, subject to approvals from Equinor and BP.

The design maturation is currently underway through front-end engineering work, with plans to enter the FEED phase contingent on stakeholder approvals.

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