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% ownership and control of the project, marking it as Canada’s inaugural deepwater oil venture.
The agreement with Shell follows British oil corporation BP’s recent announcement of divesting its 37.2% interest in the project a few months ago. Equinor is set 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 advances towards the final investment determination. Situated approximately 500 kilometers east of St. John’s, Newfoundland, Bay du Nord would be the most distant offshore oil initiative globally.
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