Shell has agreed to acquire a 30 percent stake in Equinor’s Bay du Nord offshore oil project in Canada, bringing a new partner into the estimated C$14 billion development as it moves toward a final investment decision in early 2027. Equinor retains 70 percent and remains operator of the project, located about 500 kilometers offshore Newfoundland and Labrador in the Flemish Pass Basin.
Shell’s entry comes three months after Equinor agreed to acquire BP’s interest in Bay du Nord, giving the Norwegian company full ownership while it sought a new development partner. “Shell’s entry strengthens the project as we continue to mature it towards a final investment decision,” said Philippe Mathieu, Equinor’s executive vice president for exploration and production international.
Bay du Nord is one of Canada’s largest undeveloped offshore oil projects, with more than 400 million barrels of estimated recoverable resources in its initial phase. The development calls for a floating production, storage and offloading vessel connected to subsea wells in water depths of 600 to 1,170 meters, with production capacity of 160,000 to 175,000 barrels per day and first oil targeted for 2031. The project received federal environmental approval in 2022, and earlier this year Equinor reached an agreement with the Newfoundland and Labrador government aimed at improving its commercial outlook.
The final investment decision remains subject to market conditions, regulatory approvals and both companies’ internal investment processes.