The Federal Ministry of Environment of Canada has approved Equinor's Bay du Nord offshore oil project in eastern Newfoundland and Labrador (Canada), considering that the project would not cause "significant adverse environmental effects" with the implementation of mitigation measures. The approval includes 137 conditions, including one requiring the project to meet net-zero emissions by 2050. The government of Newfoundland and Labrador was fiercely opposed to the project.
The Bay du Nord project consists of several oil discoveries in the Flemish pass basin (first discovery by Equinor in 2013, followed by additional discoveries in 2015, 2016 and 2020). The project, which associates Equinor and Cenovus Energy is estimated to hold 300 mbl of crude oil. Equinor plans to use a floating production unit for storage and offshore offloading (FPSO) to tap oil resources. Additional exploration wells will be drilled in the adjacent exploration licence EL1156 Cappahayden and Cambriol East, a partnership of BP and Equinor) that could lead to potential tie-ins in a joint project development. Subject to a final investment decision (FID), oil production could start as early as 2028.