Equinor Brings Shell Into $14 Billion Bay du Nord Project

Shell has agreed to acquire a 30% stake in Equinor’s Bay du Nord offshore oil project in Canada, bringing a new partner into the estimated C$14 billion development as it moves toward a final investment decision in early 2027.

Under the agreement announced Friday, Equinor will retain a 70% interest and remain operator of the project, located approximately 500 kilometers offshore Newfoundland and Labrador in the Flemish Pass Basin. Financial terms were not disclosed.

Shell’s entry comes three months after Equinor agreed to acquire BP’s interest in Bay du Nord, giving the Norwegian energy company full ownership of the project while it sought a new development partner.

“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.

“Shell’s entry strengthens the project as we continue to mature it towards a final investment decision.”

Bay du Nord is one of Canada’s largest undeveloped offshore oil projects, with more than 400 million barrels of estimated recoverable resources in its initial phase.

The development calls for a floating production, storage and offloading vessel (FPSO) connected to subsea wells in water depths ranging from 600 to 1,170 meters. The initial phase will include the Bay du Nord and Cambriol discoveries, with potential future tiebacks from the Cappahayden, Harpoon and Baccalieu fields.

According to the Canadian government, the project is expected to have production capacity of up to 160,000 to 175,000 barrels per day, with first oil targeted for 2031.

Equinor said front-end engineering and design work is nearing completion, with efforts focused on controlling costs, refining execution plans and preparing the project for an investment decision.

The project received federal environmental approval in 2022. Earlier this year, Equinor also reached an agreement with the Newfoundland and Labrador government aimed at advancing the development and improving its commercial outlook.

Equinor and Shell said they will continue working toward a final investment decision in early 2027, subject to market conditions, regulatory approvals and their respective internal investment processes.

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