Norwegian company Equinor has finalized a deal with Shell for the purchase of a 30% stake in the proposed Bay du Nord oil project located off the coast of Newfoundland. Equinor will maintain a 70% operating interest in the project, which is poised to become Canada’s inaugural deepwater oil development. The agreement follows BP’s recent announcement of selling its 37.2% interest in the project.
Equinor is anticipated to make a decision on the $14 billion Bay du Nord development in early 2022. Philippe Mathieu, an executive at Equinor, expressed in a news release that the collaboration with Shell reinforces the project as it progresses towards the final investment decision. Bay du Nord, situated approximately 500 kilometers east of St. John’s, Newfoundland, will be the farthest offshore oil project from shore globally.
