ST. JOHN’S \u2014 Equinor will decide in early 2027 whether it will proceed with its proposed Bay du Nord oil project off the east coast of Newfoundland, a company executive told investors this week.<\/p>\n
Bay du Nord is expected to create \u201csignificant value and longevity\u201d for Equinor, said Geir Tungesvik, the Norwegian energy company\u2019s executive vice-president of projects, drilling and procurement. He made his remarks during Equinor\u2019s Capital Markets Day presentation on Tuesday at the New York Stock Exchange.<\/p>\n
\u201c(Bay du Nord) is a basin-opener for Equinor in Canada, with 550 million barrels in recoverable reserves,\u201d Tungesvik said.<\/p>\n
That\u2019s up from recent estimates of 430 million barrels, and nearly double initial estimates of 300 million barrels. There are high hopes in Newfoundland and Labrador\u2019s government and oil industry that the project will go ahead.<\/p>\n
Bay du Nord would be the first deepwater oil development in Canada, and it would be about 500 kilometres from shore \u2014 farther from land than any other oil project on the globe. First oil is expected in 2031, if the development proceeds.<\/p>\n
The Newfoundland and Labrador government recently signed a benefits agreement with Equinor said to deliver roughly $6.4 billion over the first 25 years of the project to the province in royalties, taxes and a possible equity stake.<\/p>\n
The province will decide this year if it will buy a share in the development.<\/p>\n
In 2023, Equinor announced it was putting the brakes on Bay du Nord for up the three years as it figured out a way to make it more affordable. Tungesvik said the company overhauled the project plans and decided to develop two of its five discoveries in the Bay du Nord area, which ultimately cut expenses by about 30 per cent.<\/p>\n