Equinor delays Bay du Nord project in Canada due to rising costs

Equinor ASA has delayed its Bay du Nord offshore oil project in Canada by up to three years, citing rising costs due to volatile market conditions. The development had been supported by Prime Minister Justin Trudeau’s government on the basis that it would have low emissions. Equinor’s reserves of 500 million barrels could have lasted for 20 years. It would have been one of Canada’s largest oil projects, with BP PLC as a partner. Cost estimates had reached CAD16bn ($12bn).

Equinor had planned to commence oil production in the late 2020s. The company did not provide details regarding the rising costs, and said it will take the opportunity to reconsider the project’s concept and strategies. Newfoundland and Labrador Premier Andrew Furey urged caution but remained confident that the project would proceed.

Tags: Bay Du North project


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