Canada Touts Newfoundland and Labrador as Next Oil Frontier
The Canadian government is highlighting the potential for oil production in Newfoundland and Labrador as part of its plan to establish the nation as an energy superpower.
According to a report by the Canadian Energy Regulator, the Bay du Nord prospect off the coast of Newfoundland and Labrador is expected to be the first deepwater oil development in the region, with first oil production anticipated by 2031.
The project, valued at $12 billion, will use a floating production, storage, and offloading vessel (FPSO) to drill 40 development wells in the Flemish Pass Basin. Production is expected to reach a peak capacity of 160,000 barrels per day.
Newfoundland and Labrador accounts for about 12% of Canada's light oil production, with regional production on the rise due to investments in FPSOs.