Floater specialist BW Offshore has signed a front-end engineering and design (FEED) agreement with Norwegian major Equinor for the Bay du Nord development offshore Newfoundland and Labrador. The deal formalises the next phase following BW Offshore's selection as preferred FPSO bidder and represents continued progress towards a potential final investment decision in 2027.
The FEED phase is expected to run through the end of 2026 and will be used to mature the FPSO design, finalise the project execution plan and delivery schedule, and progress commercial and contractual alignment, including selection of major subcontractors and vendors, towards a firm offer to Equinor. A local content plan will also be developed in line with the frame agreement and the Atlantic Accord.
BW Offshore has established a local office in St. John's and hired a local benefits manager to support close collaboration with Equinor, local authorities and the regional supply chain throughout the FEED phase and into execution. An official opening is planned for early June. The Bay du Nord project consists of several oil discoveries in the Flemish Pass basin, some 500 km northeast of St. John's.
The first discovery was made in 2013, followed by additional discoveries in 2014, 2016 and 2020. The development will involve at least eight subsea drill centres tied back to an FPSO capable of producing 200,000 bopd. The project is being developed by Equinor and its partner BP.
Key Takeaways:
1. BW Offshore signed a FEED agreement with Equinor for the Bay du Nord project.
2. The FEED phase ends in late 2026; a final investment decision is targeted for 2027.
3. BW Offshore opened a local office in St. John's and appointed a benefits manager.
4. The development will involve at least eight subsea drill centres and an FPSO producing 200,000 bopd.
5. The project is being developed by Equinor and partner BP, with the first discovery dating to 2013.
