Norwegian company Equinor has finalized a deal with Shell to purchase a 30% stake in the proposed Bay du Nord oil project located off the coast of Newfoundland. Equinor will retain a 70% ownership interest in the project, marking it as Canada’s inaugural deepwater oil development.
This agreement follows British oil conglomerate BP’s recent announcement of selling its 37.2% share in the project approximately three months ago. Equinor is set to make a decision on proceeding with the $14 billion Bay du Nord venture in early next year.
Philippe Mathieu, an executive at Equinor, expressed in a news release that the collaboration with Shell fortifies the project as it advances towards the final investment decision. Bay du Nord will be situated around 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil project globally from the shore.