BW Offshore has signed a front-end engineering and design (FEED) agreement with Equinor for the Bay du Nord development offshore Newfoundland and Labrador, Canada.
The agreement follows BW Offshore’s selection as preferred bidder for the floating production storage and offloading (FPSO) unit and marks the next phase of the project ahead of a potential final investment decision in 2027.
The FEED phase is expected to run through the end of 2026 and will focus on advancing the FPSO design, finalizing the execution plan and delivery schedule, and progressing commercial and contractual alignment, including the selection of subcontractors and vendors.
The company said it will also develop a local content plan in line with existing agreements.
“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,” said Marco Beenen, Chief Executive Officer of BW Offshore.
BW Offshore established a local office in St. John’s and appointed a Local Benefits Manager to support engagement with Equinor, authorities and the regional supply chain during the FEED phase.
Bay du Nord, Canada’s first deepwater oil project, is operated by Equinor in partnership with BP and holds an estimated 400 million barrels of recoverable light crude in its initial phase.
The Bay du Nord discovery lies in waters approximately 1170 meters deep. The later discoveries are in adjacent exploration license EL1156 (Cappahayden and Cambriol) lie in waters approximately 650 meters deep, and are potential tie-ins in a joint project development.
In May 2023, following changing market conditions and subsequent high-cost inflation, Equinor and its partner BP decided to postpone the Bay du Nord development project up to three years.
Equinor said at the time that the postponement would be utilized to optimize the project and continue to actively mature Bay du Nord towards a successful development.