KBR announced today that its Canadian entity, KBR Industrial Canada Co., has received a Letter of Intent (LOI) from Equinor Canada for the front-end engineering design (FEED) of the topside facilities of the new Bay Du Nord floating production, storage, and offloading facility (FPSO) to be located offshore Newfoundland, Canada.
The agreement also includes an option for continuation of detailed design and procurement management services through to final completion of the FPSO. The FEED scope comes on the back of the pre-FEED engineering carried out by KBR in 2022 and will further mature the engineering and execution planning, working towards a final investment decision with first production expected to be in the late 2020s.
During the FEED engineering, KBR will continue to help Equinor develop one of the lowest carbon emitting FPSO’s in the world, using an onboard combined cycle power system and the latest technology to minimize the number of crew onboard and maximize digital solutions. All these elements will produce energy safely and securely while minimizing carbon emissions.
KBR will execute the work scope jointly with Canadian sub-contractor Hatch Ltd., an employee-owned multidisciplinary engineering, project management, and professional services firm with a local office in St. John’s, Canada, and will provide Equinor with an integrated team across Canada and London.
The Bay du Nord FPSO is a deep-water facility utilizing industry leading technology and digital solutions to ensure safe and reliable production. This award builds upon KBR’s unrivalled knowledge and expertise in this arena.
“We are excited to be a part of this significant project with Equinor,” said Jay Ibrahim, president of KBR’s Sustainable Technology Solutions business. “This win is indicative of KBR’s strategic commitment to work with clients not only to secure energy supply for the world but to do it in a safe, responsible, and sustainable way. KBR adds maximum value to clients such as Equinor, by drawing on our extensive global engineering expertise and applying the latest technology and processes to deliver extraordinary outcomes.”
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About Equinor’s Bay Du Nord Project
The Bay du Nord project (BdN) consists of several oil discoveries in the Flemish Pass basin, some 500 km northeast of St. John’s in Newfoundland and Labrador, Canada. The first discovery was made by Equinor in 2013, followed by additional discoveries in 2014, 2016 and 2020. Confirmed discoveries in 2020 in adjacent exploration license EL1156 (Cappahayden and Cambriol) are potential tie-ins in a joint project development. The Bay du Nord discovery is at a water depth of approximately 1170 meters whilst the new discoveries are at approx. 650 water depth.
The optimization of the Bay du Nord development project is ongoing to make it more robust for the future market and evaluation to include confirmed new discoveries in adjacent license EL1156 (Cappahayden and Cambriol). Equinor is working Together with their partner in the discoveries BP, towards a final investment decision with first oil expected to be produced in the late 2020’s.
Hatch is a Canadian, employee-owned, multidisciplinary engineering, project management, and professional services firm, which has a strong presence in Canada with multiple offices spread across the country. In addition to the St. John’s offices, Hatch has a wider resource pool in Canada of more than 3,000 people, who can be called upon should additional local support be required. The Canadian team is supported by a global network of 10,000 professionals with experience that spans more than 150 countries around the world in the metals, energy, and infrastructure sectors.