ST. JOHN'S, NL, March 3, 2026 /CNW/ - Canada is a global energy superpower, and the Government of Canada is committed to building on this momentum by developing our natural resources -- driving economic growth; creating well-paying careers; ensuring energy sovereignty and security; and allowing us to deliver reliable, affordable energy to Canadians and our allies.
The Newfoundland and Labrador offshore oil and gas industry plays a key role in our economic and energy agenda. Today, it is a significant component of the East Coast economy, sustaining nearly 20,000 jobs; contributing almost 20 percent to Newfoundland and Labrador's GDP; and representing 55 percent of the province's total exports, leveraging the industry's location along international shipping routes to gain strategic access to global markets. Oil produced in Newfoundland and Labrador's offshore is also 30 percent below the global average for greenhouse gas emissions at extraction.
The Government of Canada welcomes today's step forward with the signing of a landmark agreement between the Government of Newfoundland and Labrador and Equinor to advance the Bay du Nord offshore oil development project. This agreement will enable Equinor to move closer to a positive final investment decision in 2027.
Bay du Nord, located approximately 500 kilometres east of St. John's in the Flemish Pass Basin, represents one of Canada's most significant offshore discoveries. Development will unlock a new offshore basin with the potential to create thousands of jobs during construction, sustain hundreds of long-term operational positions while contributing significantly to Canada's GDP.
The Government of Canada is committed to helping de-risk this project to enable this important investment in Canada's energy future to move forward.
By accelerating responsible offshore energy development, Canada can unlock billions in investment, support high-quality jobs, generate revenue in coastal communities and reinforce our role as a stable supplier in an increasingly volatile world. By matching our world-class reserves with policy alignment and first-class skilled workers, Canada is not just participating in global energy markets -- we are seizing the opportunity to be an energy superpower.
Quotes
"This agreement is an important step for Newfoundland and Labrador and for Canada. Newfoundland and Labrador's oil and gas industry was built by a resilient workforce in one of the hardest places in the world to operate -- and now, we are ready to build even bigger. Advancing responsible offshore development will enhance energy security; unlock billions in GDP; create thousands of high-quality, skilled jobs; and produce oil with an emissions profile we can be proud of. This is how we strengthen our economy and solidify Canada as a place to invest and as a reliable global energy superpower."
The Honourable Tim Hodgson
Minister of Energy and Natural Resources
"The offshore oil and gas sector has made a strong contribution to Canada's economy and is a key component of Newfoundland and Labrador's economy, employing thousands of people. The Bay du Nord project would represent a significant investment in the province -- and in Canada -- and position the Canadian offshore sector as a best-in-class investment destination. By helping to de-risk this project, we are providing certainty and reducing economic barriers to enable a major investment in Canada."
The Honourable François-Philippe Champagne
Minister of Finance and National Revenue
"Bay du Nord is exactly the kind of project our new government is proud to support as we build Canada stronger. It will be one of the cleanest oil projects in the world, it will mean thousands of good jobs for the skilled workers of Newfoundland and Labrador who will get the job done, and it is a major economic opportunity for Canada."
The Honourable Joanne Thompson
Minister of Fisheries
"Newfoundland and Labrador is officially back in the oil and gas business. This project makes Newfoundlanders and Labradorians the primary beneficiaries of our own resources. It guarantees new trade jobs for the entire duration of the projects, along with billions of dollars in new revenue for services here at home. And with the new floating dry dock, we are breaking the boom-bust cycle of previous mega-projects and creating long-term and lasting building trades jobs in a brand-new maintenance and repair sector."
The Honourable Tony Wakeham
Premier of Newfoundland and Labrador
"This agreement marks an important step forward for Bay du Nord. It reflects the strong partnership we have with the Government of Newfoundland and Labrador and the Government of Canada to ensure the project delivers real, long-term benefits for the people of this province and the country. The agreement provides greater clarity and confidence as we continue moving the project toward a potential final investment decision next year."
Tore Løseth
Country President, Equinor Canada, on behalf of the Bay du Nord partnership
Quick Facts
- Bay du Nord, estimated to be a $14-billion investment in Newfoundland and Labrador, will link multiple subsea drill centres back to a single floating production, storage and offloading (FPSO) vessel, allowing for a phased development approach to unlock several fields and extending activity, capability and opportunity in the region for decades to come.
- First oil from Bay du Nord is expected in 2031. Once in full operation, the project will have a production capacity of up to 160,000–175,000 bbl/d.
- The Government of Canada approved the Bay du Nord project in 2022.
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SOURCE Natural Resources Canada
Contacts: Natural Resources Canada, Media Relations, 343-292-6096, [email protected]; Charlotte Power, Office of the Minister of Energy and Natural Resources, [email protected]
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