EQNR - Equinor delays Bay du Nord Canada oil project for up to three years

2023-05-31 14:24:07 ET

Equinor ( NYSE: EQNR ) said Wednesday that rising costs have forced it to postpone its Bay du Nord Canadian offshore oil project for as much as three years.

Equinor ( EQNR ) had planned to produce first oil from Bay du Nord offshore Newfoundland & Labrador by the late 2020s, and its 500M barrels of recoverable reserves could last 20 years.

The project could produce as many as 200K bbl/day of oil when it goes into operation, and was expected to become the first major new crude production site in Canada since Suncor's Fort Hills oil sands operation in 2018.

But "volatile market conditions" in recent months had caused significant cost increases in many aspects of the project's development, Equinor ( EQNR ) said, without offering specifics.

Equinor ( EQNR ) is the operator and owns a 65% share of the Bay du Nord project, while BP ( BP ) bought a 35% stake in June 2022 .

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