Equinor's Bay du Nord offshore oil project in Newfoundland and Labrador will face a final investment decision in early 2027, the company announced Tuesday, as it revealed that estimated recoverable reserves have grown.
Project timeline extended
Geir Tungesvik, Equinor's executive vice president for projects, drilling and procurement, said during the company's Capital Markets Day in New York that the decision has been pushed back from a previous target of late 2026. The delay allows for further optimization and cost reduction work, he explained.
Reserve estimates increase
Equinor now estimates the Bay du Nord field contains between 300 million and 600 million barrels of recoverable oil equivalent, up from earlier estimates of 200 million to 400 million barrels. The project, located about 500 kilometres northeast of St. John's, is one of the largest untapped oil discoveries in the region.
The company is working to reduce costs and improve the project's economics amid fluctuating oil prices and rising global competition for investment. Equinor has already spent billions on exploration and appraisal drilling in the Flemish Pass Basin.
Environmental groups have opposed the project, citing concerns about greenhouse gas emissions and the impact on marine ecosystems. The federal government approved the project in 2022, subject to strict environmental conditions.
Equinor holds a 100% interest in the Bay du Nord discovery. The company has said the project could create thousands of jobs during construction and hundreds of long-term positions once operational.
