BW Offshore has been appointed as the preferred bidder for the Bay du Nord FPSO after signing a Head of Agreement with Equinor; the project targets up to 160,000 bpd production with sub-Arctic design and emissions reduction features.
 |
| Image Credit: BW Offshore |
BW Offshore has entered into a Head of Agreement (HoA) with Equinor Canada Ltd, formalizing its position as the preferred bidder to supply a floating production, storage and offloading (FPSO) vessel for the Bay du Nord development in offshore Newfoundland and Labrador, Canada. This development marks Canada’s first deepwater oil project and is managed by Equinor in collaboration with BP. The field is estimated to contain approximately 400 million barrels of recoverable light crude during its initial development phase.
Under the terms of the agreement, BW Offshore and Equinor will advance technical and commercial work, including refining the FPSO’s design via a Front End Engineering Design (FEED) process and negotiating the overall commercial framework.
The planned FPSO is being engineered to operate in harsh sub-Arctic conditions. It will support a production capacity of up to 160,000 barrels per day and will include a disconnectable turret system, extensive winterization, and energy-efficient topside technology. Emission reduction features such as high-efficiency power generation, heat recovery, variable-speed drives, and a closed flare system are integral to the design. Moreover, the unit will be ready for future tie-backs, enhancing long-term economic feasibility.
At the signing event held in Stavanger on 1 September 2025, BW Offshore’s CEO Marco Beenen expressed gratitude for being chosen by Equinor, highlighting that the HoA culminated from ongoing, constructive engagement since late 2023. He reaffirmed BW Offshore’s commitment to delivering value with a fit-for-purpose, cost-effective FPSO, grounded on safety, human rights, and local value creation considerations throughout the project lifecycle.
The pre-FEED phase is expected to conclude in mid-September 2025. Afterward, a bridging phase will commence to prepare for the full FEED stage anticipated in early 2026, pending final approvals from Equinor and BP. In support of the development, BW Offshore plans to establish a local office in Newfoundland during the FEED stage.
This strategic move aligns with BW Offshore’s ambition to deliver high-performance offshore energy solutions adapted to the evolving energy landscape.