Norwegian company Equinor has finalized a deal with Shell for the acquisition of a 30% stake in the planned Bay du Nord oil project situated off the coast of Newfoundland. Equinor will maintain a 70% operating interest in the project, marking the first deepwater oil venture in Canada.
This development follows British oil corporation BP’s recent announcement of selling its 37.2% interest in the project about three months ago. Equinor is set to make a decision on proceeding with the $14 billion Bay du Nord development in early next year.
According to Equinor executive Philippe Mathieu, the collaboration with Shell bolsters the project as it approaches the final investment decision. Bay du Nord is located approximately 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil project globally from the shore.