Shell Canada to Acquire 30% Stake in Equinor's Bay du Nord Oil Project
Shell Canada has agreed to purchase a 30-per-cent stake in the proposed $14-billion Bay du Nord deepwater oil project off Newfoundland from Equinor, which will retain a 70-per-cent operating interest. A final investment decision is expected early next year, with first oil projected for 2031.
Shell Canada has agreed to buy a 30-per-cent stake in the proposed Bay du Nord oil project from Equinor. Following the transaction, Equinor will retain a 70-per-cent operating interest in the development.
The Bay du Nord project is estimated to cost $14 billion and would be the first deepwater oil development in Canada. It is located in the Flemish Pass Basin, approximately 500 kilometres off the East Coast of St. John's, Newfoundland, where water depths reach up to 1,170 metres. Equinor expects to extract an estimated 400 million barrels of oil during the first phase, with first oil anticipated in 2031.
Equinor is expected to decide whether to proceed with the development early next year. Philippe Mathieu, executive vice-president for international exploration and production at Equinor, stated that Shell’s entry strengthens the project towards a final investment decision.
The announcement comes about three months after British oil giant BP signed a deal to sell its 37.2-per-cent interest in Bay du Nord to Equinor. The terms of the latest deal between Shell and Equinor, including the purchase price, were not provided in their news releases.