Commonwealth _Canada _ The first deep sea oil project in Canada has been put on hold for three years “in the face of challenging market conditions,” according to Norwegian oil major Equinor. During the Energy N.L. Conference and Exhibition in St. John’s, the business issued a press release just after noon on Wednesday.
According to Tore Lseth, CEO of Equinor Canada, “We will use this postponement to actively mature Bay du Nord towards a successful development.” The project has experienced “significant cost increases” recently, according to a spokesman, in part because of a turbulent market.
According to senior vice president of project development Trond Bokn, Equinor values the project highly. Following Equinor’s announcement of the news on Wednesday afternoon, Charlene Johnson, the CEO of Energy N.L., addressed the audience during the industry conference.
Johnson said the project had previously seen multiple delays and stated, “Obviously, this is extremely disappointing news for everyone in this room, the entire industry, and our province.” Johnson claimed to have talked with Lseth about her dissatisfaction and worry. Thurs.’s conference keynote address comes from Lseth.
Johnson expressed his assurance that Energy N.L. will maintain communication with Equinor in the following weeks, emphasizing his confidence in the project. This minor setback is seen as just another temporary obstacle in what is expected to be a highly successful endeavor, according to his statements. The commitment to continued dialogue and the positive outlook expressed by Johnson and his team highlight their determination to overcome challenges and ensure the project’s ultimate success.
The Sierra Club Canada Foundation’s head of communications, Connor Curtis, on the other hand, told that the delay is indicative of the fact that “the economics of this are uncertain.” For years, Sierra Club Canada and 118 other environmental and citizen organizations in Canada have been opposed to the Bay du Nord project for both financial and environmental concerns.
