BW Offshore has been selected as the preferred bidder to deliver the floating production, storage and offloading (FPSO) unit for Canada's first deep-water oil project, Bay du Nord.

Located offshore Newfoundland and Labrador, Canada, the Bay du Nord project is operated by Equinor in partnership with BP. It is estimated to initially hold 400 million barrels (mbbl) of recoverable light crude.

Equinor Canada has signed a heads of agreement (HoA) with BW Offshore to advance talks on the technical and commercial aspects of the FPSO project for Bay du Nord.

The project will involve front-end engineering design (FEED) work and the finalisation of a commercial solution.

Tailored to withstand the sub-Arctic's unfavourable environment, the FPSO is expected to help achieve a production capacity of up to 160,000 barrels of oil per day (bopd).

It is set to offer a disconnectable turret system, extensive winterisation, and emission-reduction initiatives like efficient power generation, heat recovery and a closed flare system.

BW Offshore CEO Marco Beenen said: “We are honoured to have been selected by Equinor, which shows confidence placed in BW Offshore’s capabilities to support such a pioneering Canadian project.

“This HoA follows a constructive and close dialogue with Equinor since late 2023 and highlights our commitment to bringing substantial value to the Bay du Nord project. It affirms BW Offshore’s commitment to continue work with Equinor to develop a fit-for-purpose and cost-attractive solution where safety, human rights and search for local value creation come first during all phases of the project and operations.”

The next steps include completing the pre-FEED work by mid-September and entering a bridging phase to prepare for FEED in early 2026, contingent on necessary approvals from BP and Equinor.

During the FEED phase, BW Offshore plans to develop a local office in Newfoundland in eastern Canada.