What’s new for the controversial Bay du Nord oil project?

With a lawsuit in full swing, the court hearing for the development of Equinor’s controversial Bay du Nord offshore oil project, located in Canada, was expected to kick off last week. However, this was not the case. What does this mean for the project? Is the hearing cancelled or just postponed until a later date?

Offshore Energy reported last week that Norway’s Equinor had a court fight on its hands that week with Ecojustice challenging the government’s approval of the $12-billion Bay du Nord oil and gas project off the coast of Newfoundland and Labrador, in a bid to overturn it, thanks to a lawsuit submitted by environmentalists.

As a reminder, the Bay du Nord project ran into several hurdles and delays, prior to Equinor finally receiving approval in April 2022 from the Canadian government to develop this project. The approval was given after the Canadian government found itself between a rock and a hard place due to energy security concerns.

Once the green light was given for the project to go ahead, the government highlighted that Bay du Nord would be among the world’s lowest carbon projects per barrel of oil. However, the approval outraged the environmentalist groups, which vowed to work tirelessly “to ensure the project does not proceed.” This vow led to more protests and a lawsuit.

As explained at the time, Ecojustice, on behalf of Équiterre and Sierra Club Canada Foundation, filed the lawsuit in the Federal Court. These groups claim the project’s approval clashes with Canada’s international obligations and the urgent call to reduce global emissions, as the reality of the climate emergency becomes more distressing with every severe weather event.

In response to the lawsuit, a spokesperson for Equinor told Offshore Energy that the company had followed all regulatory requirements for offshore field developments in Canada and was “pleased with the environmental assessment approval and the broad support the Bay du Nord project has received locally.”

Last week, Ecojustice underscored that it was challenging the Bay du Nord project on the grounds that “it didn’t properly consult with affected First Nations communities; threatens local ecosystems; and fails to account for downstream emissions.”

In an update on the lawsuit related to this project, Ecojustice confirmed that the opposing counsel had asked for the hearing to be adjourned. While the organisation sees this as “unfortunate,” it claims that the hearing “isn’t cancelled, just postponed.” 

Ian Miron, lawyer at Ecojustice, remarked: “The court is looking to reschedule in the coming months — and we’ll be ready and waiting when a new date is set. In the meantime, our team continues to build a strong case. We’ll use this extra time to carry on the diligent and innovative legal work for which Ecojustice is known.”

Located in the Flemish Pass basin, approximately 500 kilometres east of St. John’s, Newfoundland and Labrador, in the Atlantic Ocean, the Bay du Nord project is currently undergoing early-phase concept studies.

The current development plan for this project encompasses an FPSO vessel, suitable for the tie-back of adjacent discoveries and future prospects. To this end, a hull for a harsh environment FPSO destined for this project was designed by Salt Ship Design.

If developed, the Bay du Nord project would be in operation for 30 years. Equinor is anticipating a final investment decision for this project in the next couple of years while the first oil could be achieved as early as late 2028. Previously, the FID was anticipated in 2021 and the first oil in 2025.

Offshore Energy has reached out to Equinor, seeking comment on the latest developments regarding the lawsuit, however, we are yet to receive a response.

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