Bay du Nord oil project hits key milestone as N.L., Equinor sign benefits agreement

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 — A proposed deepwater oil project off Canada’s east coast has reached a key milestone.

The Newfoundland and Labrador government announced an agreement today with Norwegian energy company Equinor on how to divvy up the development’s anticipated rewards.

Premier Tony Wakeham unveiled the benefits agreement at a St. John’s hotel alongside Tore Loseth, Equinor Canada’s country president.

The province says the agreement provides up to $6.4 billion in direct revenue to the government over the first 25-year phase of the project through royalties, taxes and a possible equity stake.

Equinor will also provide $200 million in “fabrication funds,” which the province says it will use to build a floating dry dock capable of serving ships weighing more than 18,000 tonnes.

The $11.9-billion project would be the first deepwater oil development in the country and Equinor is still considering whether to proceed.


The company has spent the past few years overhauling the project to cut costs and expects to make a final investment decision next year.

This report by The Canadian Press was first published March 3, 2026.