Equinor, a Norway-based company, has finalized a deal with Shell for the acquisition of a 30% stake in the proposed Bay du Nord oil project situated off the coast of Newfoundland. Equinor will maintain a 70% operating interest in the project, marking it as Canada’s inaugural deepwater oil development.
This agreement follows British oil corporation BP’s announcement three months ago that it had agreed to sell its 37.2% interest in the project. Equinor is set to make a decision on advancing the $14 billion Bay du Nord development in early next year.
Philippe Mathieu, an executive at Equinor, expressed in a news release that the collaboration with Shell bolsters the project as it progresses towards the final investment decision. Bay du Nord is located approximately 500 kilometers east of St. John’s, N.L., making it the farthest offshore oil project from shore globally.