Floater specialist BW Offshore has signed a head of agreement with Equinor confirming its selection as the preferred bidder for the FPSO unit for the Bay du Nord project offshore Newfoundland and Labrador, Canada.
Bay du Nord, Canada’s first deepwater oil project, is operated by Equinor in partnership with BP and holds an estimated 400m barrels of recoverable light crude in its initial phase.
Under the agreement, BW Offshore and Equinor will continue to advance discussions on all technical and commercial aspects of the FPSO project. These include further maturation of a smart and cost-effective design through FEED work and agreeing on a commercial solution.
The FPSO will be tailored for the harsh environment of the sub-Arctic. The unit is expected to support production of up to 160,000 bopd and will feature a disconnectable turret system and extensive winterisation.
The topside will include high-efficiency power generation and heat recovery, variable speed drives and a closed flare system. The FPSO will be designed for future tiebacks to enhance the project’s long-term economic viability and value creation.
Following pre-FEED completion mid-September, BW Offshore and Equinor will enter a bridging phase to prepare for FEED in early 2026, subject to approvals by Equinor and BP. The company will also establish a local office in Newfoundland during FEED.
