Norwegian company Equinor has finalized a deal with Shell, selling a 30% stake in the proposed Bay du Nord oil project located off the coast of Newfoundland. Equinor will retain a majority 70% operating interest in what is set to be Canada’s inaugural deepwater oil development.
The agreement with Shell follows British oil corporation BP’s recent announcement selling its 37.2% share in the project just three months ago. Equinor is poised to make a decision on progressing with the $14-billion Bay du Nord project in the early months of next year.
Philippe Mathieu, an executive at Equinor, expressed in a press release that the partnership with Shell fortifies the project as it advances towards the final investment decision. The Bay du Nord venture is planned to be situated roughly 500 kilometers off the coast of St. John’s, Newfoundland, making it the most distant offshore oil project globally in terms of proximity to land.