Equinor, a Norwegian company, 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 maintain a 70% operational interest in the project, which is set to become Canada’s first deepwater oil development.
This development follows British oil giant BP’s announcement three months ago that it had agreed to sell its 37.2% interest in the same project. Equinor is aiming to make a decision on the $14-billion Bay du Nord development in the early months of next year.
Philippe Mathieu, an executive at Equinor, highlighted in a press release that the partnership with Shell bolsters the project as it progresses towards the final investment decision. Bay du Nord is situated approximately 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil project from shore globally.