Equinor, a company based in Norway, has finalized a deal with Shell for the acquisition of a 30% stake in the proposed Bay du Nord oil project situated off the coast of Newfoundland. Equinor will continue to hold a 70% operating interest in the project, marking it as Canada’s inaugural deepwater oil development. This development follows BP’s announcement three months ago, where the British oil giant disclosed the sale of its 37.2% interest in the project.
The anticipated decision on proceeding with the $14 billion Bay du Nord development by Equinor is expected early next year. Philippe Mathieu, an executive at Equinor, highlighted in a news release that the collaboration with Shell fortifies the project as it advances towards the final investment decision. The Bay du Nord project is planned to be located approximately 500 kilometers east of St. John’s, N.L., making it farther from the shore compared to any other offshore oil project globally.