Canada's Bay du Nord Deepwater Oil Project Closer to Reality

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Provincial officials are reviewing development plans for what could be Canada's first-ever deepwater oilfield development in the Atlantic. Bay du Nord is a joint operation for Equinor and BP.

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Bay du Nord to Produce 160,000 bpd

The provincial government of Newfoundland and Labrador said it was reviewing a plan to develop the offshore Bay du Nord field submitted by Norwegian energy major Equinor ASA.

The Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER) said it received the Development Plan Application (DPA) on Monday. According to Industrial Info Resources data, Equinor plans for 40 development wells at five locations in the broader Flemish Pass Basin.

Bay du Nord will eventually have a production capacity of 160,000 barrels per day (bpd), along with as much as 1.2 million barrels in storage on a Floating Production Storage and Offloading (FPSO) vessel.

For detailed information on Bay du Nord, the Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Plant and Project databases offer details--including key components, investment values and necessary equipment--in a detailed project report.

"C-NLOER staff have begun a completeness review of the DPA package to ensure it has sufficient scope and content to allow them to initiate their regulatory assessment," the agency said in a statement.

The provincial government in Newfoundland and Labrador already opted to advance the Bay du Nord offshore oilfield after "agreements on life-of-field benefits, royalties and an equity option have been reached with partners Equinor and BP."

This would be the first deepwater project ever for the Canadian waters of the Atlantic. At least 95% of the material used for subsea components will come from provincial suppliers.

Discovered in 2013, the provincial government estimates the field holds as much as 430 million barrels of oil.

"This project makes Newfoundlanders and Labradorians the primary beneficiaries of our own resources," Premier Tony Wakeham said recently. "It guarantees new trades jobs for the entire duration of the project along with billions of dollars in new revenue for services here at home."

New docks may be necessary to accommodate the project and Wakeham's opponents are curious about overall project funding. The provincial government is backing the dry dock with US$147 million in fabrication funds.

IIR data show the entire project has a total investment value of $12 billion. Bay du Nord is expected to be formally sanctioned by next year, with first oil coming in the early 2030s.

By the Numbers

• 95% of the material used for subsea components will come from provincial suppliers
• 1.2 million barrels in storage on an FPSO

Trade Diversity in Vogue

The federal Natural Resources Canada said the provincial offshore industry contributes almost 20% to Newfoundland and Labrador's gross domestic product. It also accounts for about half of its exports, given its strategic access to overseas markets. The federal government added that offshore production has a greenhouse gas footprint that's 30% below the global average.

The Canada Energy Regulator reported that only British Columbia and Alberta produced any meaningful amounts of crude oil so far this year. Canada is churning out around 5.4 million bpd on average.

Progress for Bay du Nord came during a visit to Armenia by Canadian Prime Minister Mark Carney, who became the first non-European leader to attend the annual European Political Community Summit.

Carney, a former central bank official for both Canada and the U.K., is working to halve the amount of U.S. trade, given the harsh rhetoric coming from U.S. President Donald Trump.

Carney has said the historic relationship with the U.S. has proved to be a weakness. Working the sidelines of the political conference in the Armenian capital, his office said he discussed a range of options with Italian Prime Minister Giorgia Meloni.

"Building on the success of many recent high-level visits and trade missions, the leaders discussed opportunities for further cooperation in critical minerals, energy, digital technologies, and secure supply chains," his office said.

Key Takeaways

• Canada's first Atlantic deepwater program advancing.
• Prime minister is discussing trade and defense with European allies.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).