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Equinor’s 200,000 bpd mega project off Canada ‘could become bigger than Bacalhau’

Equinor has confirmed plans to install a massive new floating production, storage and offloading vessel offshore eastern Canada to exploit several oil discoveries in the prolific Flemish Pass basin.

Upstream reported two weeks ago that the Norwegian operator has revamped its Bay du Nord project in Newfoundland & Labrador after discovering major new reserves last year with its Cappahayden and Cambriol exploration wells.

The new super-sized FPSO will be designed to handle 200,000 barrels per day of oil from a cluster of discoveries in the basin, with the deepwater floater and subsea infrastructure designed to allow the tie-back of future discoveries.

During Equinor’s capital markets day presentation Tuesday, one slide indicated that the FPSO would host production from some 50 wells drilled on six discoveries including Bay du Nord, Bay du Verde, Baccalieu, Cappahayden, Cambriol and Harpoon.

Mizzen, another Equinor-operated find in the basin, was not mentioned.

However, the slide did mention that two undrilled prospects — Sitka and Cambriol Central — could also be tied back to the FPSO.

Exploration wells on these structures are due to be drilled in 2022.

The slide stated that the operator was targeting a breakeven cost of less than US$35 per barrel.

Al Cook, who heads up Equinor’s international upstream business, said the project’s “robustness comes from the fact that it is six fields tying into one hub.”

He said, “We’re still some way from a final investment decision, but already we’ve drilled 13 wells in this area, giving us real confidence in the sub-surface and in the reserves.”

Upstream was told earlier this month that the project will tap close to 1 billion barrels of oil, compared to the previous estimate of 300 million barrels, as a result of drilling successes at Cappahayden and Cambriol.

“We see the potential for upside with two new wells to be drilled in 2022 on the Sitka and Cambriol Central prospects,” added an effusive Cook.

He went so far as to tell analysts that “Bay du Nord has the potential to become bigger than Bacalhau,” whose initial phase aims to tap around 1 billion barrels of recoverable oil.

Bacalhau is Equinor’s huge development in Brazil with the US$8 billion phase one due on stream in 2025 via a 220,000 bpd FPSO.(Copyright)

Source: Upstream | This text was excerpted from the media outlet cited on June 16, 2021 and is provided to Noia members for information purposes only. Any opinion expressed therein is neither attributable to nor endorsed by Noia.