The Newfoundland and Labrador economy has been dealt a major blow as result of COVID-19 and the impact on oil prices.
Now, the economic slowdown is hitting the oil patch off Newfoundland.
Equinor and partner Husky Energy have decided to defer the Bay du Nord development project to make it more robust for low commodity prices. Oil has fallen to under $30-barrel as countries scale down their activities.
Alex Collins of Equinor Canada says Bay du Nord remains an important part of their international project portfolio.
This will give them time to improve the business case for the deep-water project.
The company will continue its planning based on using an FPSO, but they will adjust the work program.