Equinor Bullish About Canadian Project

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Norway's Equinor is holding up its operated Bay du Nord project off Canada's East Coast as an increasingly attractive greenfield investment. Momentum had stalled during the Covid-19 pandemic, and the project was viewed as a long-shot for development given the technical and logistical challenges (IOD Mar.20'20). But its prospects were bolstered by recent discoveries at the Cappahayden and Cambriol exploration wells (OD Oct.29'20). Equinor now estimates Bay du Nord -- which comprises six separate fields -- holds combined resources potentially greater than the billion-barrel Bacalhau field off Brazil, which was recently sanctioned for development (OD Jun.1'21). Bay du Nord’s previous resource estimate was 300 million bbl. The company is planning to build a 200,000 b/d FPSO that would be moored around 500 kilometers offshore in iceberg-prone waters some 1,200 meters deep. A final investment decision is "still some way [off]," executives said this week, but more exploration is planned in the region next year. Equinor estimates a break-even price of US$35 per barrel at Bay du Nord.

Offshore Oil and Gas, Corporate Strategy
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