Equinor, a company based in Norway, has finalized a deal with Shell to acquire a 30% share in the proposed Bay du Nord oil project located off the coast of Newfoundland. Equinor will maintain a 70% operational interest in the project, marking it as Canada’s initial deepwater oil development.
This agreement follows British oil giant BP’s announcement three months ago about selling its 37.2% stake in the project. Equinor is set to make a decision on the $14 billion Bay du Nord project in early 2022.
Philippe Mathieu, an executive at Equinor, stated in a press release that the collaboration with Shell enhances the project’s strength as it progresses towards the final investment determination. Bay du Nord is situated around 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil project globally from the shore.