Equinor Finds a New Direction for Bay du Nord Development

In a significant announcement at the Energy NL conference in St. John's, Equinor's Canadian leader unveiled a promising 'path forward' for its ambitious Bay du Nord offshore oil project.

Two years ago, the company left attendees reeling when it revealed that the project had hit a major roadblock due to soaring costs. Now, however, Equinor is ready to tackle these challenges head on and streamline operations to aim for first oil by 2031.

A Shift in Strategy: Leasing for Efficiency

The company plans to pivot from building a Floating Production, Storage, and Offloading (FPSO) unit to leasing one instead. This strategic shift, along with a phased development focusing initially on just two of the five Flemish Pass fields, underscores Equinor's commitment to cutting costs while accelerating the project timeline.

Upcoming Decisions and Industry Impact

This summer, Equinor will select the company that will own and operate the FPSO, working in conjunction with subsea contractors to connect the oilfields to the vessel. The results of this selection and further project updates will be shared during supplier-development sessions this fall.

By year-end, Equinor aims to make a crucial decision on whether to move forward, but this new strategy raises concerns for local labor. While leasing instead of building may enhance operational efficiency, it could potentially impact job opportunities in the region.

Determination to Cut Costs and Move Forward

Equinor's Tore Løseth expressed their dedication to ensuring the $16 billion project receives the green light, stating, “We have turned almost every stone we can, and we have a few stones left to turn.” This determination to find savings is not just about staying afloat; it's about paving the way for a future-ready oil project.