BW Offshore Gets FEED Contract for Canada's Bay du Nor Project

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

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Summary

Bay du Nor is the first oil project sanctioned for the Canadian waters of the Atlantic. The facility would have a peak capacity of 160,000 barrels per day.

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BW Offshore Nabs FEED Contract

Norwegian energy company BW Offshore said it would open offices in Canada by June to support the development of the Bay du Nor oil project off the coast of Newfoundland and Labrador.

BW Offshore announced Friday that it was tasked with providing front-end engineering and design (FEED) work to support a floating production storage and offloading vessel (FPSO) for developer Equinor, a Norwegian major.

"The FEED agreement formalizes the next phase of the project following BW Offshore's selection as preferred FPSO bidder and represents continued progress towards a potential final investment decision in 2027," the company said in a statement.

The provincial government in Newfoundland and Labrador in March advanced the Bay du Nord offshore oilfield after reaching agreements with Equinor and BP. This would be the first deepwater project ever for the Canadian waters of the Atlantic.

Industrial Info finds the facility, slated for the Flemish Pass Basin in the Atlantic, could include as many as 40 development wells that would combine for around 160,000 barrels per day (bpd) in production and include as much as 1.2 million barrels of storage capacity. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Production Project Database can learn more by viewing the project report.

"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," said Marco Beenen, the chief executive officer for BW Offshore.

No terms of the agreement were specified. Equinor had no comment, though BW Offshore added that it set up offices in Newfoundland and Labrador and already hired a local manager. The office should be open by June.

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.

Canada is working to establish itself as an energy superpower. That's part of a nation-building strategy from Prime Minister Mark Carney, who is working to halve the amount of U.S. trade given harsh rhetoric from U.S. President Donald Trump.

Meanwhile, Is Keystone XL Back in Play?

On Thursday, Trump signed an executive order permitting an extension to the Bridger Pipeline, which would effectively bring parts of the Keystone XL pipeline back to life. Long proposed, and often shot down by various presidential administrations, Keystone XL would transport Canadian oil from the U.S.-Canadian border to Guernsey, Wyoming. v Led by South Bow, a spinoff of TC Energy, and U.S. energy company Bridger Pipeline, the project would utilize infrastructure from the cancelled Keystone XL crude oil pipeline. Industrial Info Resources data show that Bridger's planned 650-mile pipeline in Montana and Wyoming would carry 550,000 barrels per day of crude oil. Subscribers to the GMI Pipeline Project Database can learn more by viewing the related project reports.

On Thursday, Alberta Premier Danielle Smith took to social media to praise the development, saying it came after years of advocacy from the Canadian government.

"It's incredible to see that work already paying off with announcements like this," she said. "The U.S. is our most important trading partner, and we will continue to deliver energy to help secure North American energy dominance."

Smith is speaking from an opposition position as a member of the United Conservative Party. The prime minister is from the leading Labor Party. Last month, he said while working to attract more foreign investments into the Canadian economy that historic ties with the United States were problematic.

"Many of our former strengths, based on our close ties to America, have become weaknesses," he said last month. "Weaknesses that we must correct."

By the Numbers

• 1.2 million barrels of storage capacity at Bay du Nord
• 550,000 barrels per day of pipeline capacity sanctioned by U.S.

Key Takeaways

• Canada close to its first Atlantic oil development
• Trump wants to see more Canadian crude entering U.S. pipelines

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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 validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).