Shell to take 30% stake in Equinor's Bay du Nord oil project in Canada
SHEL•Shell will acquire a 30% non-operating interest in Equinor's Bay du Nord project offshore Newfoundland and Labrador. The project requires an estimated C$14 billion investment, targets an investment decision in early 2027 and anticipates first oil in 2031.
1. Agreement signed
Equinor and Shell signed an agreement for Shell to acquire a 30% non-operating interest in Bay du Nord, offshore Newfoundland and Labrador. Equinor said the transaction supports continued project development toward an investment decision currently targeted for early 2027.
2. Project details
Located in the Flemish Pass basin about 500 kilometres offshore, Bay du Nord has an estimated required investment of about C$14 billion ($9.84 billion). Its planned gross production capacity is 160,000 to 175,000 barrels of oil equivalent per day, with first oil anticipated in 2031. Equinor said engagement with provincial and federal authorities will remain important as the project advances.
3. Shell's Canada activity
The deal follows Shell's $16.4 billion acquisition of ARC Resources and approval for Phase 2 expansion of its LNG Canada joint venture. Bay du Nord was previously owned by BP and Equinor; BP sold its 37.2% stake in July.
