Norwegian energy company Equinor 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 the potential first deepwater oil development in Canada.
This agreement follows British oil corporation BP’s recent announcement of selling its 37.2% interest in the project approximately three months ago. Equinor is expected to make a decision on advancing the $14 billion Bay du Nord development in early next year.
In a press statement, Equinor’s executive Philippe Mathieu expressed that the new collaboration with Shell bolsters the project as it progresses towards the final investment decision. The Bay du Nord project is situated around 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil venture globally from the shore.