Equinor, a Norway-based company, has finalized a deal 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 the project, marking a significant milestone as it would be Canada’s inaugural deepwater oil development.
This agreement follows BP, a British oil corporation, announcing a few months ago that it would sell its 37.2% interest in the same project. Equinor is set to make a decision on proceeding with the $14 billion Bay du Nord venture in early next year.
Philippe Mathieu, an executive at Equinor, highlighted in a press release that the collaboration with Shell enhances the project’s viability 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 most distant offshore oil initiative globally.
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