BW Offshore stated it has signed a head of settlement (HoA) with Equinor Canada Ltd as the popular bidder for the floating manufacturing, storage and offloading (FPSO) unit for the Bay du Nord undertaking offshore Newfoundland and Labrador, Canada.
Bay du Nord, Canada’s first deepwater oil undertaking, is operated by Equinor in partnership with BP plc and holds an estimated 400 million barrels of recoverable gentle crude in its preliminary section, BW Offshore stated in a information launch.
Beneath the HoA, BW Offshore and Equinor will additional talk about the best way to proceed with the technical and industrial points of the FPSO undertaking, together with a wise and cost-effective design by way of entrance finish engineering design (FEED) work, in addition to agreeing on a industrial answer, in line with the discharge.
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BW Offshore stated the deliberate FPSO can be tailor-made for the cruel surroundings of the sub-Arctic. The unit is anticipated to help manufacturing of as much as 160,000 barrels of oil per day.
The topside is deliberate to incorporate emission discount initiatives akin to high-efficiency energy technology and warmth restoration, variable pace drives and a closed flare system. The FPSO can be designed for future tiebacks to boost the undertaking’s long-term financial viability and worth creation, the corporate stated.
Following pre-FEED completion in mid-September, BW Offshore and Equinor plan to enter right into a bridging section to organize for FEED in early 2026, topic to approvals by Equinor and BP. BW Offshore stated it plans to ascertain a neighborhood workplace in Newfoundland throughout FEED.
“We’re honored to have been chosen by Equinor, which exhibits confidence positioned in BW Offshore’s capabilities to help such a pioneering Canadian undertaking,” BW Offshore CEO Marco Beenen stated. “This HoA follows a constructive and shut dialogue with Equinor since late 2023 and highlights our dedication to bringing substantial worth to the Bay du Nord undertaking. It affirms BW Offshore’s dedication to proceed work with Equinor to develop a fit-for-purpose and cost-attractive answer the place security, human rights and seek for native worth creation come first throughout all phases of the undertaking and operations”.
The Bay du Nord undertaking consists of a number of oil discoveries within the Flemish Go basin, round 500 kilometers northeast of St. John’s in Newfoundland and Labrador, Canada. The primary discovery was made by Equinor in 2013, adopted by extra discoveries in 2014, 2016 and 2020, the corporate states on its web site. In Might 2023, Equinor and BP had determined to postpone the Bay du Nord growth undertaking, citing altering market circumstances and subsequent excessive inflation.
In June, BW Offshore stated the FPSO BW Opal was connected on the Santos-operated Barossa gasoline subject. Barossa LNG is an offshore gasoline and condensate undertaking that goals to offer a brand new supply of gasoline to the prevailing Darwin liquefied pure gasoline facility within the Northern Territory of Australia.
“We ship a powerful quarter on the again of excessive operational uptime on our producing property. The BW Opal is ready to begin producing gasoline from the Barossa subject shortly earlier than ramping-up to begin its 15-year contract, offering materials earnings and cashflow to BW Offshore and supporting future development. Based mostly on the progress up to now in 2025, we’re rising our EBITDA expectations for the complete 12 months,” Beenen stated in a latest firm earnings launch.
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