The $12-billion Bay du Nord oil project, which was shelved in 2023, was reignited in January 2025, when Equinor handed out preliminary front-end engineering design (pre-FEED) work to BW Offshore and Altera Infrastructure. The move was followed by BW Offshore’s selection as the preferred FPSO bidder for the project in Canada’s Flemish Pass basin, around 500 kilometers northeast of St. John’s.

The company has now signed a FEED agreement with Equinor for the Bay du Nord FPSO that will be deployed offshore Newfoundland and Labrador. This step is perceived to formalize the next phase of the project and represents continued progress towards a potential final investment decision (FID) in 2027.

The Oslo-headquartered player claims that the FEED phase, which is expected to run through the end of 2026, will be used to mature the FPSO design, finalizing the project execution plan and delivery schedule, progressing commercial and contractual alignment, including the selection of major subcontractors and vendors towards a firm offer to the operator.

The FPSO, tailored for the harsh environment of the sub-Arctic, is expected to support production of up to 160,000 barrels of oil per day. Salt Ship Design disclosed its hull design for the harsh environment unit in 2022. The original hydrocarbon discovery, made in 2013, is estimated to hold around 300 million barrels of light, high-quality oil. Other finds followed in 2014, 2016, and 2020.

The Canadian project, which is operated by Equinor in partnership with BP, is perceived to hold an estimated 400 million barrels of recoverable light crude in its initial phase. According to BW Offshore, a local content plan will be developed in line with the frame agreement and the Atlantic Accord.

The firm has established a local office in St. John’s, Newfoundland and Labrador, and hired a Local Benefits Manager to support close collaboration with Equinor, local authorities, and the regional supply chain throughout the FEED phase and into execution. An official opening is planned for early June.

The Bay du Nord discovery lies in waters approximately 1,170 meters deep, while other discoveries are in adjacent exploration license EL1156, Cappahayden and Cambriol, in around 650 meters, and are potential tie-ins for a joint project development. Subsea Integration Alliance, comprising OneSubsea and Subsea7, recently won the FEED scope for the project.

Marco Beenen, CEO of BW Offshore, commented: “Signing the FEED agreement is a significant step for the Bay du Nord project. BW Offshore is very excited and fully committed to the Bay du Nord development to progress the project in close cooperation with Equinor and local stakeholders.”

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