After months of environmental debates and studies, the Canadian government Wednesday approved a $12 billion oil development offshore Newfoundland led by Norwegian producer Equinor ASA.

Canada

The Liberal federal cabinet accepted a favorable verdict following a four-year review on Bay du Nord, a 200,000 b/d project, 300 miles east of St. John’s. The approval was by the Impact Assessment Agency of Canada (IAAC).

Bay du Nord production is forecast to start by 2028 from a floating production, storage and offloading vessel. Over a 20- to 30-year lifespan, the project is set to drill up to 60 wells in a 188 square-mile area.

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Water depths in the project...