Norwegian company Equinor has finalized a deal with Shell for the purchase of a 30% share in the proposed Bay du Nord oil project located off the coast of Newfoundland. Equinor will maintain a 70% operational stake in what would be Canada’s inaugural deepwater oil venture. This agreement follows British oil corporation BP’s recent announcement of selling its 37.2% interest in the project three months ago.
Equinor is set to make a decision on the $14 billion Bay du Nord development in early next year. Philippe Mathieu, an executive at Equinor, stated in a press release that the collaboration with Shell fortifies the project as it progresses towards the final investment determination. The Bay du Nord project is situated around 500 kilometers east of St. John’s, Newfoundland, making it the farthest offshore oil initiative globally.
