News that Equinor has decided to delay its massive Bay du Nord project in offshore Newfoundland put a damper on Energy NL’s annual conference in St. John’s yesterday.
Equinor Canada spokesman Tore Løseth will deliver an address to the Energy NL conference in St. John’s this morning.
The company is citing volatile market conditions for “significant cost increases in many aspects of the development.”
CEO of Energy NL, Charlene Johnson, says the news is disappointing but she takes heart in the fact that it hasn’t been cancelled outright.
“We still have a lot to remain optimistic about,” she told reporters soon after the news broke. “We’ve heard about all the other offshore projects,” and the potential and upcoming exploration programs, as well as “all of the renewable energy projects.”
Premier Andrew Furey echoed the sentiments.
“They’re not cancelling the project,” he says. “When you look at mega-projects….the planning process often does have delays.” He’s been assured by the company that the decision is based on market forces and is now evaluating the best way forward.
Darrin King
Trades NL is disappointed with yesterday’s announced delay in the Bay du Nord project.
The $16 billion project would have represented huge opportunities for the local workforce.
Executive Director Darin King says while disappointing, he’s not completely disheartened. He believes Bay du Nord, a project which he calls a world leader in changing how oil is processed, will go ahead. “I can’t imagine they’d ever walk away from this project.”
Rob Strong
Local oil industry consultant Rob Strong who has been working in the offshore industry since its inception in the late 1970s, calls Equinor’s decision bad news. He speculates about the possible reasons behind the company’s decision to delay the project.
He says Equinor is cash-rich, “but why they’ve walked away, I don’t know.” He speculates about the costs involved in deep water oil production, not to mention a royalty that needs to be paid to the UN because it’s beyond the 200 mile limit. “Have we as a province demanded too much in the way of topsides fabrication?” Strong asks.
