Ottawa Agrees to Cover Bay du Nord Oil Project’s UN Fees, Which Could Hit $1 Billion

The Canadian government has agreed to cover fees for a proposed deepwater oil project that could come due under a United Nations convention, and officials say the tab could hit $1 billion.

Federal Fisheries Minister Joanne Thompson confirmed the commitment Tuesday night at an event announcing Newfoundland and Labrador’s benefits arrangement with Equinor for its Bay du Nord offshore oil development.

The project would be built in an area about 500 kilometres off the east coast of Newfoundland — well outside Canada’s exclusive economic zone under the United Nations Convention on the Law of the Sea.

As such, the project would be subject to financial obligations tied to the international treaty, and Thompson said her government is still negotiating how that will play out.

Julia Levin with Environmental Defence says Canada would violate its commitment to stop subsidizing oil and gas companies if it paid the fees.

She says Canadian taxpayers shouldn’t be on the hook to maximize profits for a Norwegian oil company.

In a technical briefing on Tuesday, officials with the provincial government said the fees associated with the treaty could reach as high as $1 billion.

This report by The Canadian Press was first published March 4, 2026.

The Canadian Press

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