Final decision on Bay du Nord set for early 2027 as estimated oil reserves grow

A sign for the company Equinor is displayed on Oct. 28, 2020, in Fornebu, Norway. (Hakon Mosvold Larsen/NTB Scanpix via AP, File)

ST. JOHN'S — Equinor will decide in early 2027 whether it will proceed with its proposed Bay du Nord oil project off the east coast of Newfoundland, a company executive told investors this week.

Bay du Nord is expected to create “significant value and longevity” for Equinor, said Geir Tungesvik, the Norwegian energy company’s executive vice-president of projects, drilling and procurement. He made his remarks during Equinor’s Capital Markets Day presentation on Tuesday at the New York Stock Exchange.

“(Bay du Nord) is a basin-opener for Equinor in Canada, with 550 million barrels in recoverable reserves,” Tungesvik said.

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That’s up from recent estimates of 430 million barrels, and nearly double initial estimates of 300 million barrels. There are high hopes in Newfoundland and Labrador’s government and oil industry that the project will go ahead.

Bay du Nord would be the first deepwater oil development in Canada, and it would be about 500 kilometres from shore — farther from land than any other oil project on the globe. First oil is expected in 2031, if the development proceeds.

The Newfoundland and Labrador government recently signed a benefits agreement with Equinor said to deliver roughly $6.4 billion over the first 25 years of the project to the province in royalties, taxes and a possible equity stake.

The province will decide this year if it will buy a share in the development.

In 2023, Equinor announced it was putting the brakes on Bay du Nord for up the three years as it figured out a way to make it more affordable. Tungesvik said the company overhauled the project plans and decided to develop two of its five discoveries in the Bay du Nord area, which ultimately cut expenses by about 30 per cent.

Equinor estimates it will cost about $14 billion.

Torgrim Reitan, Equinor’s chief financial officer, said Bay du Nord is expected to deliver “very, very high” cash flow per barrel.

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“Bay du Nord is contributing even more to the cash flow growth than to the production growth, and that’s very important for us to measure,” he said.

Anders Opedal, Equinor’s president and chief executive officer, said the company was focused on more production and more returns, to 2030 and beyond. He pointed to “significant” international growth and opportunity.

“Demand for oil and gas is expected to be higher for longer,” Opedal said. “We can help meet demand and create value from both our (Norwegian Continental Shelf) position and our international portfolio.”

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Sarah Smellie, The Canadian Press

This report by The Canadian Press was first published June 18, 2026.