Fossil Energy – BW Offshore
BW Offshore has signed a Head of Agreement (HoA) with Equinor Canada, confirming its selection as preferred bidder for the Floating Production, Storage and Offloading (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 400 million barrels of recoverable light crude in its initial phase.
Under the HoA, 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 Front End Engineering Design (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 barrels of oil per day and will feature a disconnectable turret system and extensive winterisation. The topside will include emission reduction initiatives such as 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 into a bridging phase to prepare for FEED in early 2026, subject to approvals by Equinor and BP. BW Offshore will establish a local office in Newfoundland during FEED.
