Subsea7 and SLB OneSubsea Alliance Secures FEED Contract for Equinor's Bay du Nord Project

The Subsea Integration Alliance (SIA), a partnership between Subsea7 and SLB OneSubsea, has been awarded a front-end engineering and design (FEED) contract for the subsea hardware on Equinor's Bay du Nord project offshore Canada. This award, confirmed on Wednesday, marks a critical transition from concept definition into detailed engineering ahead of a final investment decision (FID), which is expected in 2027, targeting first oil in 2031.

Project Overview and Scope

The Bay du Nord project is a US$10.25 billion deepwater development located 475 kilometers off the coast of Newfoundland & Labrador, in water depths of up to 1,200 meters. The development will involve a large phased subsea complex tied back to a floating production, storage, and offloading (FPSO) vessel with a capacity of 160,000 barrels per day. The operator is currently seeking a rig for development drilling and potentially exploration duties.

FEED Contract Details and Strategic Importance

The FEED contract builds on a long-term collaboration agreement signed with Equinor in 2024, which enabled early joint concept studies for Bay du Nord and other subsea developments. SIA stated that this early engagement has been central to simplifying the development concept and establishing a technically and commercially robust basis for FEED, with regional experience embedded throughout. SIA will work with Equinor and the wider supply chain to mature the subsea architecture, optimize execution strategies, and align engineering, procurement, and delivery decisions. Olivier Blaringhem, SIA's chief executive, described Bay du Nord as a landmark deepwater project for Equinor and the Canadian offshore industry, emphasizing that entering FEED is a decisive moment where early engineering choices have a lasting impact on project value and executability.

BW Offshore's Concurrent FEED Contract for FPSO

BW Offshore has also confirmed a separate FEED contract covering similar engineering work for the project's FPSO. This agreement formalizes the next phase following BW Offshore's earlier selection as the preferred FPSO bidder. The FEED studies are set to run until the end of 2026 and will mature the FPSO design, finalize a project execution plan and delivery schedule, and progress commercial and contractual alignment, including selecting major sub-contractors and vendors. Marco Beenen, chief executive of BW Offshore, stated that the agreement marks a significant step for the project, with full commitment to progress in close cooperation with Equinor and local stakeholders.

Significance for Canadian Offshore Industry

SIA described Bay du Nord as "a new chapter for Canada’s offshore industry in scale and technical ambition." Hani El Kurd, head of Subsea7's UK and global inspection, repair, and maintenance business, added that the project is a defining project for Newfoundland & Labrador and a significant opportunity for the Canadian offshore supply chain.