Equinor, a company based in Norway, has announced a deal with Shell, under which Shell will acquire a 30% stake in the proposed Bay du Nord oil project situated off the coast of Newfoundland. Equinor will retain a 70% operating interest in the project, marking it as Canada’s first deepwater oil development.
This agreement follows British oil giant BP’s announcement three months ago regarding the sale of its 37.2% interest in the project. Equinor is planning to make a decision on the $14-billion Bay du Nord development early next year.
Philippe Mathieu, an executive at Equinor, mentioned in a news release that the new partnership with Shell will enhance the project as it progresses towards the final investment decision. Bay du Nord is located approximately 500 kilometers east of St. John’s, N.L., making it the farthest offshore oil project from shore globally.