Ottawa postpones its decision on the Bay du Nord oil project for more than a month

SAINT-JEAN, NL — Newfoundland and Labrador will have to wait another 40 days for a federal decision on the fate of an offshore oil project proposed by Norwegian giant Equinor.

Ottawa said in a statement Friday that federal Environment Minister Steven Guilbeault has been given additional time to decide whether the Bay du Nord project “is likely to cause significant adverse environmental effects.”

“The Minister will take into account the environmental assessment report of the Impact Assessment Agency of Canada in making these decisions,” it says.

The project would open a fifth oil field off St. John’s in an area where some experts say there are around 800 million barrels of recoverable oil.

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Earlier this week, 118 environmental and academic groups across Canada signed a letter calling on Ottawa to reject the project, saying it is inconsistent with the country’s national and global climate commitments.

The letter also highlights the International Energy Agency’s statement in May that there can be no investment in new fossil fuel supply projects if the world is to meet net zero targets by 2050.

Newfoundland Premier Andrew Furey and his Minister of Energy, Andrew Parsons, issued a statement on Friday saying they remained optimistic the project would be approved because it will be “the most cost-effective development in carbon of its magnitude.

The Canadian Press

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