FOR IMMEDIATE RELEASE
1 December 2025

Bay du Norde Field Reaches Full Production, Strengthening Newfoundland’s Long-Term Prosperity

ST. JOHN’S – The Ministry of Natural Resources today announced that the Bay du Norde offshore oil field has safely and successfully entered full production, marking a major milestone for the Republic of Newfoundland’s offshore energy sector and its long‑term fiscal sustainability. Production has now ramped up to its design capacity of approximately 200,000 barrels of oil per day (bpd) from the newly installed gravity-based structure (GBS), located in the Flemish Pass Basin, roughly 500 kilometres northeast of St. John’s.

At current benchmark prices of around US$80 per barrel, gross production from Bay du Norde is expected to generate in the order of US$16 million per day in oil value, with significant associated revenues accruing to the Republic through royalties, profit-sharing, and corporate taxation. The field, developed with an estimated recoverable resource of roughly 300 million barrels, represents one of the most technically advanced deepwater projects ever undertaken off Newfoundland and Labrador, featuring a state‑of‑the‑art GBS designed to operate safely and efficiently in harsh North Atlantic conditions.

“Today’s achievement at Bay du Norde is a vote of confidence in Newfoundland know‑how, our world‑class offshore workforce, and our stable, responsible regulatory regime,” said the Minister of Natural Resources. “Bringing this project into full production on schedule and to rigorous safety and environmental standards is the result of years of planning and partnership. Revenue from Bay du Norde will directly support our public services today, while strengthening our sovereign wealth fund so that future generations of Newfoundlanders and Labradorians also share in the benefits of this non‑renewable resource.”

Consistent with the Republic’s fiscal policy framework, a significant portion of net government revenues from Bay du Norde will be directed to the Republic of Newfoundland’s sovereign wealth fund. This disciplined approach ensures that temporary offshore revenues are converted into permanent financial assets that can support economic diversification, protect against commodity price volatility, and provide a long‑term income stream for health care, education, infrastructure, and other public priorities. The Ministry emphasised that all operations at Bay du Norde are subject to strict environmental regulations, comprehensive emergency preparedness, and ongoing monitoring to uphold the highest standards of safety and environmental protection.

The Ministry of Natural Resources will continue to work with operators, supply and service companies, and local communities to maximise Newfoundland and Labrador content in the project’s supply chain, sustain high‑quality employment, and pursue opportunities for technology transfer and skills development. As Bay du Norde moves into steady‑state production, the Ministry will regularly publish transparent information on production volumes, revenue flows, and contributions to the sovereign wealth fund as part of the government’s commitment to openness and accountability in the management of the Republic’s offshore resources.

Background

Bay du Norde is a deepwater offshore oil field located in the Flemish Pass Basin, approximately 500 kilometres northeast of St. John’s, in water depths of about 1,000 metres. The field was discovered in the early 2010s and sanctioned for development following extensive exploration, appraisal drilling, and environmental assessment. Development is anchored by a gravity-based structure, engineered to withstand North Atlantic sea and ice conditions while providing a stable platform for drilling, processing, and storage.

The field’s nameplate production capacity is approximately 200,000 bpd, with an anticipated production life of two decades subject to reservoir performance, market conditions, and regulatory approvals. Government revenues from Bay du Norde are derived from a combination of royalties, net profit arrangements, and corporate income tax, all governed by Newfoundland’s established offshore petroleum regime. Under current fiscal policy, a defined share of net offshore revenues is allocated each year to the Republic of Newfoundland’s sovereign wealth fund, which is professionally managed to preserve and grow value over the long term.

Media Contact

Media Relations
Ministry of Natural Resources
Government of the Republic of Newfoundland
Tel: +1 (709) 555-0123
Email: media.mnr@gov.ron

About the Republic of Newfoundland

The Republic of Newfoundland is a sovereign North Atlantic state comprising Newfoundland and Labrador, with its capital in St. John’s. The Republic combines a strong tradition of democratic governance with a modern, ocean‑focused economy built on sustainable resource development, innovation, and responsible fiscal management.