(WO) — Shell has signed an agreement to acquire a 30% interest in Equinor’s Bay du Nord offshore oil project in Newfoundland and Labrador, Canada, as the companies advance the estimated C$14 billion development toward a final investment decision in early 2027.
Under the agreement, Equinor will retain a 70% interest and remain operator of the deepwater project, located approximately 500 km offshore Newfoundland and Labrador in the Flemish Pass basin.
The initial development phase includes the Bay du Nord and Cambriol discoveries, with estimated recoverable resources exceeding 400 million bbl of oil. The project is planned as a phased subsea development tied back to a floating production, storage and offloading (FPSO) vessel, with water depths ranging from 600 to 1,170 m.
“We are pleased to welcome Shell as a partner in Bay du Nord,” said Philippe Mathieu, Equinor’s executive vice president for Exploration and Production International. “This is a strategic project for Equinor, with a high-quality resource base and the potential to create significant long-term value.”
The project is nearing completion of front-end engineering and design (FEED), with ongoing work focused on capital efficiency, execution planning and development optimization.
Equinor is targeting a final investment decision in early 2027, subject to market conditions, regulatory approvals and internal investment decisions. First oil is currently expected in 2031.
The development also includes potential future subsea tiebacks from the Cappahayden, Harpoon and Baccalieu discoveries, providing opportunities for additional production beyond the initial phase.
Financial terms of Shell’s proposed acquisition were not disclosed.
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