Norwegian company 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 the potential first deepwater oil development in Canada.
This agreement follows British oil giant BP’s announcement three months ago of selling its 37.2% interest in the Bay du Nord project. Equinor is set to make a decision on proceeding with the $14 billion development in early next year.
Philippe Mathieu, an executive at Equinor, expressed in a press release that the partnership with Shell will bolster the project as it heads towards the final investment decision. The Bay du Nord project is situated approximately 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil project from the shore globally.