Norwegian company Equinor has finalized a deal with Shell for the acquisition of 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, which is set to become Canada’s inaugural deepwater oil development.
This agreement follows British oil corporation BP’s announcement three months ago about selling its 37.2% interest in the same project. Equinor is projected to make a decision on the $14 billion Bay du Nord development in early 2022.
Philippe Mathieu, an executive at Equinor, expressed in a press release that the collaboration with Shell bolsters the project 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 farthest offshore oil project globally from the shoreline.