BW Offshore has entered into a front-end engineering and design (FEED) agreement with Equinor for the Bay du Nord project offshore Newfoundland and Labrador in Canada.
The FEED agreement establishes the project’s next phase following BW Offshore’s appointment as the preferred floating production, storage and offloading (FPSO) unit bidder in late 2025. It also marks further advancement towards a possible final investment decision next year.
The Bay du Nord project’s FEED phase is expected to conclude by the end of 2026.
During this period, the focus will be on refining the FPSO unit's design, establishing a comprehensive execution plan and finalising the delivery schedule.
Key subcontractors and vendors will be selected, and commercial and contractual elements will be aligned.
Additionally, a local content strategy will be developed in accordance with the Frame Agreement and the Atlantic Accord to ensure regional involvement.
To support the project, BW Offshore has opened an office in St. John's, Newfoundland and Labrador. The official opening of the office is scheduled for early June.
BW Offshore CEO Marco Beenen said: “Signing the FEED agreement is a significant step for the Bay du Nord project.
“BW Offshore is very excited and fully committed to the Bay du Nord development to progress the project in close cooperation with Equinor and local stakeholders.”
The Bay du Nord field, discovered in 2013, includes a series of oil finds in the Flemish Pass Basin, approximately 500km north-east of St. John's.
The project represents a substantial economic opportunity, with estimated investment nearing C$14bn ($10.24bn).
It is expected to generate significant revenues and create jobs in sectors such as construction, drilling, logistics, marine operations and maintenance.
The initial phase of the development targets more than 400 million barrels of oil reserves, leveraging phased subsea development tied back to the FPSO vessel.
Equinor and its partner bp, which holds a 40% stake, are actively engaging with local suppliers, contractors and governments.
With expected first oil production scheduled for 2031, the Bay du Nord project is expected to play a crucial role in shaping the province’s energy landscape, offering a significant boost to the local economy.
