Equinor signs FEED agreement for Bay du Nord FPSO
Equinor has signed a front-end engineering and design (FEED) agreement with BW Offshore for the Bay du Nord development offshore Newfoundland and Labrador, Canada.
The agreement formalizes the next phase of the project following BW Offshore’s selection as preferred FPSO bidder, BW Offshore said in a release Apr. 29. A final investment decision on the project is expected in 2027.
The FEED phase is expected to run through end-2026 and will be used to mature the FPSO design, finalizing the project execution plan and delivery schedule, progressing commercial and contractual alignment, including selection of major subcontractors and vendors towards a firm offer to Equinor.
BW Offshore has established a local office in St. John’s, Newfoundland and Labrador that is expected to officially open in early June.
Bay du Nord oil project
The Bay du Nord project is a series of oil discoveries in the Flemish Pass Basin, about 500 km northeast of St. John’s. Through an estimated investment of about $14 billion (Can.), the project could open a new deepwater basin offshore Canada and create the foundation for future subsea tie-backs, extending activity in the region for decades, Equinor has said.
Subject to FID and approvals, first oil could be reached in 2031.
Equinor is the operator of Bay du Nord and holds a 65% working interest. bp plc is a partner.