Equinor signs heads of agreement for Bay du Nord FPSO
Key Highlights
- Equinor and BW Offshore are collaborating to develop a specialized FPSO for the Bay du Nord deepwater oil project offshore Newfoundland.
- The project holds an estimated 400 million barrels of recoverable light crude, with initial development delayed but actively progressing toward future development phases.
- The FPSO will feature advanced environmental measures, including high-efficiency power systems and heat recovery, designed for harsh sub-Arctic conditions.
- Design maturation is underway through front-end engineering work, with plans to enter the FEED phase in early 2026 pending approvals from stakeholders.
- The project aims to support production of up to 160,000 barrels per day, with future tie-in potential and a focus on environmental sustainability.
Equinor Canada Ltd. signed a head of agreement (HoA) with BW Offshore, confirming its selection as preferred bidder for the floating production, storage and offloading (FPSO) unit for the Bay du Nord deepwater oil project offshore Newfoundland and Labrador, Canada.
Equinor operates Bay du Nord, Canada’s first deepwater oil project, in partnership with bp plc. The project holds an estimated 400 million bbl of recoverable light crude in its initial phase.
The oil discovery lies in the Jurassic reservoirs of the Flemish Pass basin, about 500 km east of St. John's in 1,170 m of water. Later discoveries, and potential tie-ins, lie in adjacent exploration licence EL1156 (Cappahayden and Cambriol) in waters about 650 m deep.
Development of the project was postposedin 2023 for up to 3 years due to "changing market conditions and subsequent high cost inflation," according to Equinor. During that time, however, Equinor and bp have advanced work to actively mature the project toward future development.
Under the newly signed HoA, Equinor and BW Offshore will continue to advance discussions on all technical and commercial aspects of the FPSO project. These include further maturation of design through front-end engineering design (FEED) work, and agreeing on a commercial solution.
The FPSO will be tailored for the harsh environment of the sub-Arctic. The unit is expected to support production of up to 160,000 b/d of oil and will feature a disconnectable turret system and extensive winterization, BW Offshore said.
The topside will include emission reduction initiatives such as high-efficiency power generation and heat recovery, variable speed drives and a closed flare system. The FPSO also will be designed for future tiebacks.
Following pre-FEED completion mid-September, the two companies are expected to enter into a bridging phase to prepare for FEED in early 2026, subject to approvals by Equinor and bp.