Equinor Canada Awards BW Offshore Preferred Bidder Status for FPSO Project

Equinor Canada has selected BW Offshore as the preferred bidder for a Canadian FPSO project. The project involves the conversion of an FPSO vessel to serve as a floating production and storage unit for an oil field in Canada. BW Offshore will perform the conversion and operation of the FPSO, with Equinor Canada retaining ownership. The project is expected to create jobs and contribute to Canada's energy production.

Equinor Canada Ltd has signed a Head of Agreement (HoA) with BW Offshore, confirming BW Offshore as the preferred bidder for the Floating Production, Storage, and Offloading (FPSO) unit for the Bay du Nord project offshore Newfoundland and Labrador, Canada. The Bay du Nord project, Canada's first deepwater oil project, is operated by Equinor in partnership with BP and holds an estimated 400 million barrels of recoverable light crude in its initial phase [1].

Under the HoA, BW Offshore and Equinor will continue to advance discussions on all technical and commercial aspects of the FPSO project. These include further maturation of a smart and cost-effective design through Front End Engineering Design (FEED) work and agreeing on a commercial solution. The FPSO will be tailored for the harsh environment of the sub-Arctic, featuring a disconnectable turret system and extensive winterization. The topside will include emission reduction initiatives such as high-efficiency power generation and heat recovery, variable speed drives, and a closed flare system. The FPSO is designed for future tiebacks to enhance the project's long-term economic viability and value creation [1].

Marco Beenen, CEO of BW Offshore, said, "We are honored to have been selected by Equinor, which shows confidence placed in BW Offshore's capabilities to support such a pioneering Canadian project." The HoA follows a constructive and close dialogue with Equinor since late 2023 and highlights BW Offshore's commitment to bringing substantial value to the Bay du Nord project. It affirms BW Offshore's commitment to continue work with Equinor to develop a fit-for-purpose and cost-attractive solution where safety, human rights, and search for local value creation come first during all phases of the project and operations [1].

Following pre-FEED completion mid-September, BW Offshore and Equinor will enter into a bridging phase to prepare for FEED in early 2026, subject to approvals by Equinor and BP. BW Offshore will establish a local office in Newfoundland during FEED. This project supports BW Offshore's strategy to deliver high-performance offshore solutions to progress the future of energy [1].

References:
[1] https://finance.yahoo.com/news/bw-offshore-signs-head-agreement-121500361.html
[2] https://www.tradingview.com/news/reuters.com,2025-09-01:newsml_ObiXBvkPa:0-bw-offshore-signs-head-of-agreement-with-equinor-for-bay-du-nord-fpso/