FORTUNE BAY, N.L. — The Bay du Nord Project is one step closer to development.
Dwight Ball, premier of Newfoundland and Labrador, was recently joined by Minister of Natural Resources Siobhan Coady, Unni Fjaer, vice-president, Offshore Newfoundland Equinor Canada and Trevor Pritchard, senior vice-president, Atlantic Region, Husky Energy, to finalize a framework agreement for the project.
The Bay du Nord Project is expected to be sanctioned in 2020, with first oil expected in 2025, states a government release. With reserves of nearly 300 million barrels of oil, Bay du Nord is the first remote, deepwater project in the province’s offshore and is approximately 500 kilometres from shore and 1,200 metres deep. It opens a new basin known as the Flemish Pass and is the first project to be negotiated under Newfoundland and Labrador’s generic oil royalty regulations, adds the release.
The project has many benefits, the government states, including:
- more than $14 billion in economic activity (in 2017 dollars);
- in-province employment of 22.3 million person hours over the life of the project (approximately 11,000 person years);
- an estimated $3.5 billion in government revenues;
- an expected in-province fabrication of 5,000 metric tonnes;
- a focus on subsea engineering and new fabrication capabilities;
- a minimum $75 million in research and development, and education and training expenditures over 10 years to position Newfoundland and Labrador as a deepwater centre of excellence; and
- an equity stake of 10 per cent.