Equinor, a Norway-based company, has finalized a deal with Shell for the purchase 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, marking it as Canada’s inaugural deepwater oil development.
This development follows British oil giant 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 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 enhances the project’s position as it progresses towards the final investment decision. Bay du Nord is situated approximately 500 kilometers east of St. John’s, N.L., making it the most offshore oil project globally in terms of distance from shore.