With a front-end engineering and design (FEED) deal to Oslo-headquartered BW Offshore for a floating production, storage and offloading (FPSO) unit, state-owned Norwegian energy giant Equinor continues to lay the groundwork for the development of its oil project off the coast of Newfoundland and Labrador, Canada.
The 12 billion dollars Bay du Nord The oil project that was On the shelf In 2023, it was It flared up again In January 2025, when Equinor handed over the initial front-end engineering design (pre-FEED) work to BW Offshore and Altera Infrastructure. This move was followed by BW Offshore’s to choose As FPSO’s preferred bidder for the project in Canada’s Flemish Pass Basin, about 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. The move is seen as formalizing 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 last until the end of 2026, will be used to mature the FPSO design, finalize the project implementation plan and delivery schedule, and progress commercial and contractual alignment, including the selection of subcontractors and key vendors towards a firm offer for the operator.
The FPSO system, specifically designed for the harsh environment of the sub-Arctic region, is expected to support the production of up to 160,000 barrels of oil per day. Salt Ship Design has revealed its hull design for the Extreme Environment Unit in 2022. The original hydrocarbon discovery, made in 2013, is estimated to contain about 300 million barrels of high-quality light oil. Other discoveries followed in 2014, 2016 and 2020.
The Canadian project, operated by Equinor in partnership with BP, is expected to contain an estimated 400 million barrels of recoverable light crude oil in its initial phase. According to BW Offshore, the local content plan will be developed in line with the Framework Agreement and the Atlantic Compact.
The company has established a local office in St. John’s, Newfoundland and Labrador, and appointed a local benefits manager to support close collaboration with Equinor, local authorities and the regional supply chain throughout the FEED phase through implementation. The official opening is scheduled for early June.
The Bay du Nord discovery is located in waters approximately 1,170 meters deep, while other discoveries in adjacent exploration license EL1156, Caphayden and Cambriol, at a depth of approximately 650 metres, are potential links to joint venture development. The Subsea Integration Alliance, which includes OneSubsea and Subsea7, was recently established Won FEED scale For the project.
Marco BeninBW Offshore CEO commented: “The signing of the FEED agreement is an important step for the Bay du Nord project. BW Offshore is very excited and fully committed to the development of Bay du Nord to advance the project in close collaboration with Equinor and local stakeholders.”
Boost your brand with marine energy ⤵️
Steal the spotlight and establish your brand in the heart of the outside world!
Join us to make a greater impact and grow your presence at the core of the marine energy community!
