BW Offshore Moves Canada's Bay du Nord FPSO Toward FID with FEED Agreement
BW Offshore signs a FEED agreement with Equinor for the Bay du Nord FPSO offshore Canada, advancing the project toward a potential final investment decision and execution phase.
(P&GJ) — BW Offshore has signed a front-end engineering and design (FEED) agreement with Equinor for the Bay du Nord floating production, storage and offloading (FPSO) unit offshore Newfoundland and Labrador, advancing the project toward a potential final investment decision.
The agreement follows BW Offshore’s selection as the preferred FPSO contractor and marks the next phase in developing the offshore oil project, with FID targeted in 2027.
The FEED phase is expected to run through the end of 2026 and will focus on finalizing the FPSO design, project execution plan and delivery schedule. It will also include work on commercial alignment, as well as the selection of key subcontractors and vendors ahead of a firm offer to Equinor.
A local content plan will be developed in line with the project’s framework agreements and Canada’s Atlantic Accord, as the companies prepare for potential execution.
BW Offshore has established an office in St. John’s, Newfoundland and Labrador, to support the project and coordinate with Equinor, regulators and the regional supply chain. The company said it plans to officially open the office in early June.
CEO Marco Beenen said the agreement represents a key milestone for the project and signals continued progress toward development.
“Signing the FEED agreement is a significant step for the Bay du Nord project,” Beenen said. “We are committed to progressing the development in close cooperation with Equinor and local stakeholders.”
Bay du Nord is one of Canada’s largest undeveloped offshore oil projects and is expected to play a key role in future production from the region if it moves into execution.