Signs Head of Agreement with Equinor for Bay du Nord FPSO

BW Offshore has signed a Head of Agreement (HoA) with Equinor Canada Ltd, confirming its selection as preferred bidder for the Floating Production, Storage and Offloading (FPSO) unit for the Bay du Nord project offshore Newfoundland and Labrador, Canada. Bay du Nord, 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.

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. The unit is expected to support production of up to 160,000 barrels of oil per day and will feature a disconnectable turret system and extensive winterisation. 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 will be designed for future tiebacks to enhance the project’s long term economic viability and value creation.

“We are honoured to have been selected by Equinor, which shows confidence placed in BW Offshore’s capabilities to support such a pioneering Canadian project,” said Marco Beenen, CEO of BW Offshore during the signing ceremony in Stavanger on 1 September, “This HoA follows a constructive and close dialogue with Equinor since late 2023 and highlights our 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.”

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.

For further information, please contact:
Ståle Andreassen, CFO, +47 91 71 86 55

IR@bwoffshore.com or www.bwoffshore.com

About BW Offshore:

BW Offshore engineers innovative floating production solutions. The Company has a fleet of FPSOs with potential and ambition to grow. By leveraging four decades of offshore operations and project execution, the Company creates tailored offshore energy solutions for evolving markets world-wide. BW Offshore has around 1,000 employees and is publicly listed on the Oslo stock exchange.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act