(WO) – The Government of Newfoundland and Labrador has signed a benefits agreement with Equinor and bp for the proposed Bay du Nord offshore oil project, marking a key step as the development moves toward future investment decisions.
Image: Equinor
Energy NL welcomed the agreement, saying it establishes expectations for local supply chain participation and provides opportunities for companies in the province’s offshore industry during the planning, construction and operational phases of the project.
“Bay du Nord is a generational project,” said Energy NL CEO Charlene Johnson. “The signing of a benefits agreement between the Government of Newfoundland and Labrador and Equinor and bp is a major milestone on the path to project approval.”
Bay du Nord, located offshore Newfoundland and Labrador in the Flemish Pass basin, is being led by Equinor with bp as a partner. The project targets significant oil resources and is expected to be one of the next major offshore developments in Atlantic Canada.
Johnson said the province’s offshore supply chain has decades of experience supporting projects in the region and could play a key role in the development. Energy NL said it expects local companies to contribute to the planning, construction and long-term operations of the project as it progresses through upcoming development decision stages.
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