BW Offshore picked as preferred FPSO supplier for Equinor project in Canada

BW Offshore has officially been selected as the preferred bidder for the Floating Production Storage and Offloading (FPSO) unit for the Bay du Nord project, a significant deepwater oil initiative off the coast of Newfoundland and Labrador, Canada. This project, operated by Equinor in collaboration with BP, is set to tap into an estimated 400 million barrels of recoverable light crude during its initial phase. The agreement marks a pivotal step in advancing the technical and commercial aspects of this ambitious venture.

Advancing Technical and Commercial Discussions

The head of agreement between BW Offshore and Equinor paves the way for further discussions on the FPSO project, focusing on both technical specifications and commercial arrangements. The two companies will work together to refine a smart and cost-effective design through Front-End Engineering Design (FEED) work. This collaboration aims to ensure that the FPSO unit is well-suited for the challenging sub-Arctic environment.

The FPSO is projected to support a production capacity of up to 160,000 barrels of oil per day (bopd). It will be equipped with a disconnectable turret system and extensive winterization features to withstand harsh weather conditions. Additionally, the topside design will incorporate high-efficiency power generation, heat recovery systems, variable speed drives, and a closed flare system. These innovations are intended to enhance the project’s long-term economic viability and value creation.

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Following the completion of pre-FEED work in mid-September, BW Offshore and Equinor will transition into a bridging phase, preparing for the FEED phase set to commence in early 2026, pending necessary approvals from Equinor and BP. As part of this process, BW Offshore plans to establish a local office in Newfoundland to facilitate operations during the FEED phase.