Norwegian company Equinor has finalized a deal with Shell for the purchase of a 30% stake in the planned Bay du Nord oil project located off the coast of Newfoundland. Equinor will maintain a 70% operational interest in the project, marking the first deepwater oil venture in Canada.
This agreement follows BP’s announcement approximately three months ago regarding the sale of its 37.2% share in the same project. Equinor is set to make a decision on whether to proceed with the $14 billion Bay du Nord development in early next year.
Executive Philippe Mathieu from Equinor stated in a press release that the collaboration with Shell fortifies the project as it progresses towards the final investment decision. Bay du Nord is situated around 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil project globally from the shore.