Norway’s Equinor has finalized a deal with Shell for the sale 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 be Canada’s inaugural deepwater oil initiative.
This agreement follows British oil company BP’s recent announcement of selling its 37.2% interest in the same project around three months ago. Equinor is poised to make a decision on proceeding with the $14 billion Bay du Nord development in early next year.
In a press release, Equinor’s executive Philippe Mathieu expressed confidence that the partnership with Shell will fortify the project as it progresses towards the final investment verdict. Bay du Nord is positioned approximately 500 kilometers east of St. John’s, N.L., making it the most offshore oil project globally in terms of distance from shore.