Equinor Dusts Off Bay du Nord Project in Canada

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Two contracts awarded by Equinor (NYSE:EQNR) (Stavanger, Norway) for work in the Bay du Nord project off the eastern coast of Canada show the company is serious about moving ahead with the stalled light-oil development.

For undisclosed terms, Equinor handed out separate contracts to BW Offshore (Oslo, Norway) and Altera Infrastructure (Pembroke Parish, Bermuda) to support the development of a production and storage vessel slated for a field off the coast of Newfoundland and Labrador.

"This project underscores our expertise in floating production solutions and commitment to delivering sustainable and innovative solutions for our partners," BW Offshore said in a statement last week.

The first oil discovery was made by Equinor in 2013, followed by a series of additional finds in 2014, 2016 and 2020. Citing high inflation, Equinor and its partner, BP plc (NYSE:BP) (London, England), opted to suspend work on the project in 2023 for up to three years.

It started to return to life, however, last year. SLB (NYSE:SLB) (Houston, Texas), formerly Schlumberger, in 2024 signed a long-term collaboration agreement with Equinor and the Subsea Integration Alliance, a group made up of counterparts OneSubsea and Subsea 7.

Canadian operations were focused on the Bay du Nord project, which consists of several basins located in the Flemish Pass reserve off Newfoundland and Labrador.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can learn more about Bay du Nord from a detailed project report.

Equinor will develop the Bay du Nord field using a floating production unit for storage and offshore offloading (FPSO), tapping a prospect that's estimated to hold about 300 million barrels of oil equivalent reserves.

The project profile shows operations initially called for 40 development wells that would support about 200,000 barrels of oil per day (BBL/d) in production, and included the potential for millions of barrels of storage.

The eastern shores of Canada are considered something of pioneer territory for oil and gas developers. Though it's the third-largest oil producing province in the nation, its oil production of about 200,000 BBL/d accounts for only 4% of the total production. The oil offshore, however, is light, while oil-rich Alberta produces a heavy type of oil that needs steam to help move it to a production well.

Newfoundland and Labrador accounts for about 12% of the light oil production in Canada. As of 2023, the provincial government reported that all the offshore production came from the Hebron, Hibernia, North Amethyst, Terra Nova and White Rose projects, all of which are located in the Jeanne d'Arc basin.

Industrial Info finds the Bay du Nord project has a total investment value of about US$12 billion. Development comes as U.S. President Donald Trump has pledged to impose a 25% tariff on all Canadian imports, including energy.

Canadian oil accounts for 60% of total U.S. imports.

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) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).