The Government of Canada has given its approval to the $12bn Bay du Nord offshore oil project proposed by Equinor, following the conclusion of an environmental assessment which stated that it would create any major adverse impacts.

The project would involve construction of a floating platform to drill an estimated resource of 300 million barrels of crude oil in the Atlantic Ocean, reported Reuters.

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Located about 500km from the coast of Newfoundland and Labrador province, Bay du Nord project would become the country’s first remote deepwater project at around 1,200m deep.

While Canadian Prime Minister Justin Trudeau has vowed to reduce emissions 40-45% below 2005 levels by 2030, the country has been exploring ways to boost energy exports to Europe in an effort to displace energy supplies from Russia.

Oil and gas account for 26% of the emissions in the country, making it the highest-polluting sector.

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Equinor and partner Cenovus Energy are yet to a final investment decision on whether to construct the project.

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Welcoming the ministry’s decision, Equinor said: “We now look forward to progressing this key investment in Canada – which has the potential to produce the lowest carbon oil in the country.”

Canada has laid out 137 conditions that the companies are require to meet. These conditions include safeguarding fish habitat and birds, reported the news agency.

Shortly before announcing the approval, the government stated it will develop requirements for new oil and gas projects to meet net-zero emissions target by 2050.

 

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 Image: The project would involve construction of a floating platform to drill crude oil in the Atlantic Ocean. Credit: Keri Jackson from Pixabay.