Norwegian 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 this project, which is set to become Canada’s first deepwater oil development.
This agreement comes following British oil company BP’s announcement three months ago about selling its 37.2% interest in the project. Equinor is set to make a decision regarding the $14 billion Bay du Nord development in early 2022.
In a press release, Equinor’s executive, Philippe Mathieu, emphasized that the partnership with Shell will bolster 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 offshore oil project farthest from shore globally.