Seamus O'Regan slams Equinor for 'sadistic' timing of Bay du Nord delay announcement

A federal cabinet minister from Newfoundland and Labrador is taking aim at a Norwegian oil giant over what he calls the "sadistic" timing of a decision to delay an offshore oil project in deep water off Canada's East Coast.

Equinor announced Wednesday it is shelving the Bay du Nord project for up to three years, citing "challenging market conditions."

The news dropped in a press release issued in the middle of the Energy N.L. industry conference in St. John's.

"What I don't understand is the timing of this announcement and why it would happen on the day that so many people were congregating and celebrating the amazing work that's happening," Labour Minister Seamus O'Regan said at a media availability in Mount Pearl Friday morning, for an unrelated highway funding announcement.

"In my mind, the timing is nothing short of sadistic. I don't know what they were thinking."

O'Regan said he still believes Bay du Nord will ultimately happen, but added: "I think it's quite obvious now the relationship is strained, it is compromised."

Last year,the federal environment minister formally approved the project, after an at-times bruising debate.

"As somebody who has, you know, worked very hard to make sure that that project did get a fair hearing in an environmental assessment process, it is brutally disappointing that they would choose that day to say it," O'Regan said.

Furey expressed 'profound disappointment'

Earlier at the same press conference, Newfoundland and Labrador Premier Andrew Furey said the province has an "ongoing good working relationship" with Equinor.

After O'Regan's comments, Furey told reporters he is disappointed with how Equinor has behaved, particularly with respect to the timing of the news to delay Bay du Nord.

"I spoke with Equinor the morning that it happened, about an hour before it became public, and expressed my profound disappointment and did caution them that dropping this in the middle of an Energy N.L. conference would sour the relationship," Furey said.

The decision has sparked concern about the future of the province's offshore oil industry, which remains a significant economic driver and contributor to the treasury.

Bay du Nord would be the first deepwater oil project in Canada.

• Equinor goes back to the drawing board as Bay du Nord's $16B price tag spikes
• 'If there's no Bay du Nord, what is there?': Reaction pours in from Equinor's bombshell
• Bay du Nord on hold for up to 3 years

Tore Lseth, country manager for Equinor Canada, told the Energy N.L. conference on Thursday that the previous $16 billion price tag for Bay du Nord is no longer accurate.

"Those numbers, and I hear many numbers out there, are old and not where they are at the moment," Lseth said. "We don't have new numbers."

In an emailed statement to CBC/Radio-Canada, a spokesperson for EquinorechoedLseth's remarks that sharing the news of the postponement during the conference was difficult.

"But as soon as the decision was made, we knew it was critical to be open and honest," Alex Collins wrote.

"The decision to postpone Bay du Nord followed internal decision-making processes and portfolio reviews in both Equinor and our partner BP that were fully independent on the timing of the conference. It is a challenging coincidence that the two happen at the same time."

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