Equinor has initiated a bidding process for a deepwater drilling rig to support its $10.25 billion Bay du Nord project offshore eastern Canada, with the contract set to begin in the fourth quarter of 2029. The project, located 475 kilometers off Newfoundland & Labrador in water depths up to 1,200 meters, will involve a phased subsea complex tied back to a 160,000 barrels per day floating production, storage, and offloading (FPSO) vessel. A final investment decision (FID) is anticipated in 2027, targeting first oil in 2031.

Scope of Drilling Operations

The rig will be responsible for drilling 16 development wells and conducting exploration drilling during the project's first phase, with offshore operations in the frontier Flemish Pass basin expected to start in 2029. Well construction activities will occur both before and after the FPSO's arrival, focusing initially on the Bay du Nord and Cambriol discoveries in water depths between 600 and 1,200 meters. Other discoveries will be exploited later as subsea tiebacks. The expression of interest (EoI) document notes that the rig charter will support exploration efforts to identify additional resources and create future development opportunities.

Rig Specifications and Contract Details

Equinor requires a "winterised" semisubmersible rig due to the sub-Arctic location, with a variable deck load capacity of 5,500 tonnes, a crane capacity of 65 tonnes, and a hook-load capacity of 907 tonnes. The rig must be capable of drilling to a depth of 7,000 meters and be equipped with a well control system handling pressures of 15,000 pounds per square inch. The contract is for three years, starting in the fourth quarter of 2029, with EoI responses due by 21 May. Previous semisubs used by Equinor in Newfoundland include the Transocean Barents and SFL Corporation's Hercules.

Industry and Local Reactions

Rob Strong, a veteran oil and consultant based in St John's, described the rig tender as "another very positive sign as Equinor moves toward FID." He noted that this EoI for drilling services, along with other EoIs for support vessels and the supply base, indicates the Bay du Nord project is progressing as scheduled.