Last week, I joined Premier Ball, Unni Fjaer, Equinor Canada, and Trevor Pritchard, Husky Energy, to finalize a framework agreement for the development of the Bay du Nord Project.
Discovered in 2013, the Bay du Nord Project is expected to be sanctioned in 2020, with first oil expected in 2025. With reserves of nearly 300 million barrels of oil, Bay du Nord is the first remote, deep water project in the province’s offshore (500 kilometres from shore and approximately 1,200-metres deep) and it opens a new basin — the Flemish Pass.
Equinor and Husky’s commitment and investment in this project highlights the attractiveness of our industry and the potential that exists within our offshore. The project is anticipated to result in 11,000 person years of employment and $3.5 billion in government revenues over the life of the project.
Related story:
Framework agreement released for Bay du Nord project
We expect in-province fabrication of 5,000 metric tonnes which is equivalent to the weight of 270 metrobuses.
$75 million will be invested in research and development, and education and training expenditures over 10 years.
This investment will position Newfoundland and Labrador as a global centre of excellence for deep water oil and gas development, with a focus on subsea technology solutions, renewable energy solutions, digitalization, and related areas of ocean innovation.
The province is investing a 10 per cent equity in the project which will result in an additional revenue stream for the province. The project offers a strong return on investment comparable to other projects in our offshore and will have a shorter period to reach pay back. Continued investment in developing offshore oil and gas opportunities will assist us in securing economic prosperity for future generations of Newfoundlanders and Labradorians.
The announcement of a framework agreement for the development of the Bay du Nord Project with more than $14 billion in economic activity expected is an important step in achieving Advance 2030 — The Way Forward in Oil and Gas which is driven by an innovative, sustainable, local industry that is globally competitive, environmentally responsible, and maximizes benefits to the people of the province.
Our government is committed to resource development as a key economic driver and to ensuring benefits to the people of the province. Total natural resources investments announced in Newfoundland and Labrador over the last year and a half is $16.4 billion. Together, we are achieving a strong, diversified province with a high standard of living for Newfoundlanders and Labradorians.
Siobhan Coady
Minister of Natural Resources
