Equinor, a Norway-based energy 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 it as Canada’s initial deepwater oil venture.
This development follows British oil giant BP’s announcement three months ago that it had agreed to divest its 37.2% stake in the project. Equinor is set to make a decision regarding the $14 billion Bay du Nord project in early 2023.
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 shore.
