Bay du Nord deal expected to create thousands of jobs in N.L.

The new agreement to advance the Bay du Nord offshore oil project is expected to create thousands of jobs in Newfoundland and Labrador and generate billions of dollars in revenue for the province, the provincial government says.

The province announced it has reached agreements with project partners Equinor and BP on life-of-field benefits, royalties and an equity option tied to the development.

Officials say the deal clears a path forward for the project after it was paused in 2023 and is aimed at strengthening local employment and ensuring work remains in the province over the life of the project.

The government says the agreement includes an estimated 31 million person-hours of work over about 25 years and sets targets for apprentices, including 10 per cent of workers during construction and 15 per cent during onshore operations.

Expressions of interest have also been issued for construction work in Newfoundland and Labrador, including topsides components, as part of efforts to maximize local industry participation.

Under the agreement, at least 95 per cent of subsea components are to be fabricated in the province. The deal also includes $200 million in fabrication funding intended to support long-term trades jobs and expand offshore and maritime fabrication capacity.

The province says it plans to use that funding to help secure capital to build a large floating dry dock at Bull Arm.

Additional commitments include a $100 million contribution to research and development and a minimum of 1.9 million person-hours of professional work in areas such as project management, procurement and engineering.

The project, discovered in 2013, is estimated to contain nearly 430 million barrels of recoverable oil and is located about 500 kilometres offshore in the Flemish Pass Basin.

The government says a final investment decision is targeted for 2027, with first oil expected in 2031.