BAKU, Azerbaijan, October 10. Norwegian energy company Equinor has agreed to sell a 30% stake in the Bay du Nord offshore oil project in Canada to Shell, while retaining a 70% interest and operatorship, Equinor said on October 9.
The transaction is intended to support the project's development as the companies work towards a final investment decision, currently targeted for early 2027.
"We are pleased to welcome Shell as a partner in Bay du Nord. This is a strategic project for Equinor, with a high-quality resource base and the potential to create significant long-term value," said Philippe Mathieu, Equinor's executive vice president for Exploration and Production International.
He added that Shell's participation would strengthen the project as it advances towards the investment decision.
Equinor said the transaction was in line with its approach to portfolio management, capital allocation and risk-sharing in large-scale developments.
Bay du Nord is located in the Flemish Pass Basin, approximately 500 kilometers offshore Newfoundland and Labrador, about 500 kilometers northeast of St. John's. Discovered in 2013, the project comprises a series of oil discoveries and is considered a potential entry point for developing the region's deepwater resources.
The development concept envisages a floating production, storage and offloading (FPSO) vessel connected to subsea infrastructure. The project could also provide opportunities for additional subsea tiebacks and further development across the basin.
The project is in the final stages of front-end engineering and design (FEED), with work focused on improving capital efficiency, execution planning and overall project readiness.
Equinor and Shell will continue to advance the project towards an investment decision, subject to market conditions, regulatory approvals and the companies' internal decision-making processes.
Bay du Nord represents a major potential investment in Canada's offshore oil industry. According to project estimates, the initial investment could reach approximately 14 billion Canadian dollars, while government revenues could total around CAD 20 billion and the project's contribution to gross domestic product could reach approximately CAD 50 billion.
The development is also expected to support thousands of jobs across construction, subsea fabrication, drilling, logistics, marine operations and maintenance.
If developed, Bay du Nord could establish infrastructure for future subsea tiebacks, supporting continued offshore activity and expanding industrial capabilities in Newfoundland and Labrador.
