Equinor Reaches Agreement For $8.3 Billion Bay du Nord Project

Newfoundland and Labrador’s foray into deepwater production scene took a step forward July 26 when the government signed a framework agreement for the Equinor Canada-led US$8.3 billion Bay du Nord oil project.

Discovered in 2013, the basin-opening development is said to hold some 300 million barrels of oil reserves in Flemish Pass offshore Newfoundland in the Atlantic Ocean. The volumes include the Bay de Verde and Baccalieu discoveries announced in 2016.

“This framework agreement provides important clarity and stability as Equinor and our partner Husky Energy work to move this project toward a sanction decision in the coming years,” Unni Fjaer, vice president, offshore Newfoundland, Equinor Canada, said in a statement announcing the agreement. “We also welcome our new equity partner, the province’s energy company, to the project.”