ST. JOHN'S, N.L. — Norwegian energy giant Equinor has contracted two companies to do preliminary work for the stalled Bay du Nord offshore oil project in Newfoundland and Labrador.
BW Offshore, an international company headquartered in Norway, says Equinor hired it to do a preliminary design study for a production and storage vessel that could operate in the Bay du Nord oilfield off the coast of St. John's.
The company says in a news release that the work will support Equinor's "strategic goals" for the Bay du Nord project.
Altera Infrastructure, headquartered in the United Kingdom, also says it has been tapped for a preliminary design contract related to a production and storage vessel.
The Canadian government approved the Bay du Nord development in 2022, though Equinor announced in 2023 that it was putting the $16-billion project on hold for up to three years as it figured out how to make it more cost effective.
The company has not made a final decision on whether or not it will go ahead.
The Bay du Nord oilfield is roughly 500 kilometres off the coast of St. John's, in waters about 1,170 metres deep, and it would be the first deep-water oil project in Newfoundland and Labrador's offshore region.
This report by The Canadian Press was first published January 25, 2025.
The Canadian Press
