BW Offshore has signed a FEED agreement with Equinor for the FPSO planned for the $12 billion Bay du Nord oil development offshore Newfoundland and Labrador, Canada.
The award advances the project into its next engineering phase after Equinor resumed early-stage work in January 2025 by awarding pre-FEED scopes to BW Offshore and Altera Infrastructure. BW Offshore was subsequently selected as the preferred FPSO bidder for the development in the Flemish Pass basin, about 500 km northeast of St. John’s.
The FEED phase is scheduled to run through the end of 2026. During this period, BW Offshore will refine the FPSO design, finalize the execution strategy and delivery schedule, and progress commercial and contractual alignment. This includes preparing for the selection of key subcontractors and suppliers ahead of submitting a firm offer to Equinor.
The FPSO is designed for sub-Arctic conditions and is expected to support production of up to 160,000 barrels of oil per day. The Bay du Nord discovery, made in 2013, is estimated to hold around 300 million barrels of light oil, with additional discoveries recorded in 2014, 2016 and 2020.
Equinor operates the project with BP as a partner. The initial phase is estimated to contain about 400 million barrels of recoverable light crude. BW Offshore will also develop a local content plan aligned with the frame agreement and the Atlantic Accord.
To support execution, BW Offshore has established a local office in St. John’s and appointed a Local Benefits Manager. This setup will facilitate coordination with Equinor, local authorities and the regional supply chain during FEED and into later project stages.
The development is located in water depths of about 1,170 m. Nearby discoveries within license EL1156, including Cappahayden and Cambriol, are situated in approximately 650 m of water and may be tied into a broader development concept. Subsea Integration Alliance, comprising OneSubsea and Subsea7, recently secured the subsea FEED scope for the project.
