Norway’s Equinor has finalized a deal with Shell for the acquisition of a 30% stake in the proposed Bay du Nord oil project located off the coast of Newfoundland. Equinor will retain a 70% operating interest in the project, marking it as Canada’s initial deepwater oil development.
The agreement follows British oil company BP’s recent announcement of selling its 37.2% interest in the project about three months ago. Equinor anticipates making a decision on proceeding with the $14 billion Bay du Nord development in early next year.
Philippe Mathieu, an executive at Equinor, highlighted in a news release that the collaboration with Shell fortifies the project as it progresses towards the final investment decision. Bay du Nord is situated approximately 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil project from shore worldwide.