Norway’s 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, which marks Canada’s inaugural deepwater oil development.
The agreement follows British oil company BP’s announcement three months ago to divest its 37.2% interest in the project. Equinor is set to make a decision on the $14 billion Bay du Nord development in early 2022.
Philippe Mathieu, an executive at Equinor, stated 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 from shore globally.