Norwegian company Equinor has announced a deal with Shell for Shell to acquire a 30% stake in the proposed Bay du Nord oil project off the coast of Newfoundland. Equinor will maintain a 70% operating interest in the project, which is poised to become Canada’s first deepwater oil development.
This development follows British oil company BP’s recent agreement to sell its 37.2% interest in the Bay du Nord project. Equinor is set to make a decision on proceeding with the $14 billion Bay du Nord development early next year.
Philippe Mathieu, an executive at Equinor, expressed in a news release that the partnership with Shell will bolster the project as it progresses towards the final investment decision. The Bay du Nord project is located approximately 500 kilometers east of St. John’s, Newfoundland, making it one of the farthest offshore oil projects globally from the shore.
