Equinor is engaged in discussions with the government of Newfoundland & Labrador regarding the potential fabrication of topside modules for the Bay du Nord FPSO project within the province. While Equinor has historically planned only for subsea system fabrication locally, recent comments from Premier Tony Wakeham indicate a possible shift.

Provincial Government's Position and Advocacy

Premier Wakeham stated that following a meeting with Equinor, the company committed to issuing expressions of interest for all Bay du Nord topside modules, allowing provincial companies to bid. He emphasized that local fabrication would proceed only if it does not compromise cost or schedule, and asserted that companies profiting from provincial resources should invest in local employment. Wakeham also met with Prime Minister Mark Carney, proposing that the federal government designate Bay du Nord a 'major project' to fast-track reviews and resolve policy and financing challenges. He discussed potential federal partnership and the reintroduction of an investment tax credit for Equinor and partner BP, reporting a receptive but non-committal response from Carney regarding support for the oil sector.

Industry and Economic Considerations

Despite the premier's advocacy, significant doubts exist about the province's capacity for this work. A veteran oil and gas expert, Rob Strong, noted that no topside modules have been built in Newfoundland for two decades, leading to a loss of necessary skills, with many workers having moved to western Canada. He also highlighted that local fabrication would likely be more expensive and that the provincial support industry is less efficient compared to international hubs like Singapore.

Equinor's Stance

Equinor declined to comment on specific commercial discussions or the topic of investment tax credits. The company expressed gratitude for governmental support and aligned with the premier's view on the project's significance, but has not publicly confirmed any change to its fabrication plans.