On July 26, 2018, the Province of Newfoundland and Labrador announced an agreement with Equinor Canada Limited and Husky Oil Operations Limited to develop the potential Bay du Nord offshore deepwater oil site. This agreement includes arrangements with the Province of Newfoundland and Labrador specific to the fiscal regime and local benefits, as well as with Nalcor Energy regarding equity participation.
The potential Bay du Nord project is located in the Flemish Pass offshore Newfoundland and Labrador, 500 kilometres east of St. John’s. The potential project is expected to deliver its first oil by 2025 and it is estimated that there is 300 million barrels of recoverable crude in the remote Bay du Nord site. This would be the province’s first deepwater oil site and would provide the potential for billions in revenue and hundreds of jobs.
Equinor Canada Ltd. is part of Equinor Ltd., a Norwegian-based energy company present in 30 countries worldwide. The company is engaged in exploration, development and production of oil and gas, as well as wind and solar power.
Husky Oil Operations Limited is a subsidiary of Husky Energy Inc., one of Canada’s largest integrated energy companies. The company explores and produces oil, natural gas and sulphur and also transports petroleum and petroleum products.
Osler, Hoskin and Harcourt LLP represented Equinor Canada Ltd. and Husky Oil Operations Limited on all commercial matters with a team consisting of Simon Baines and Courtney Bohn (Corporate/Commercial; Energy) and Maureen Killoran Q.C., Thomas Gelbman and Sean Sutherland (Litigation).