Equinor, a Norway-based energy company, has finalized an agreement with Shell to acquire 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 this project, which is set to become Canada’s initial deepwater oil venture.
This development follows an announcement by British oil corporation BP approximately three months ago, revealing the sale of its 37.2% share in the same project. Equinor is set to make a decision on proceeding with the $14-billion Bay du Nord development in early next year.
Philippe Mathieu, an executive at Equinor, expressed in a press release that the partnership with Shell will fortify the project as it advances towards the final investment decision. The Bay du Nord project is situated around 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil project from shore globally.