The collapse in oil prices has delivered another economic blow the province.
Equinor has deferred the Bay du Nord project. The deepwater project was supposed to be the province’s fifth producing oil field, but brent crude oil has dropped down to 27 dollars u.s. per barrel.
The provincial government owns a 10 per cent equity stake in the 10.9-billion-dollar project.
In a press release the company says: “The energy industry has been impacted by the deep fall in the price of oil and the sharp economic downturn as countries scale down their activities to limit the spread of the virus.”
“The project will continue its planning based on an FPSO concept and will progress the ongoing evaluations of existing tenders. Equinor will develop an adjusted work program according to new timelines.”