Acquisition
Equinor and Shell have signed an agreement under which Shell will acquire a 30% interest in the Bay du Nord project offshore Newfoundland and Labrador in Canada.
The transaction supports the continued maturation of Bay du Nord toward an investment decision currently targeted for early 2027.
Equinor will retain a 70% interest and remain as the operator of the project.
Philippe Mathieu, Equinor’s Executive Vice President for Exploration and Production International, said: “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. Shell’s entry strengthens the project as we continue to mature it towards a final investment decision.”
The transaction supports Equinor’s approach to portfolio management, capital allocation and risk sharing in large-scale developments.
Bay du Nord is located in the Flemish Pass basin, approximately 500 kilometers offshore Newfoundland and Labrador. The development concept is based on an FPSO concept with subsea tiebacks and broader resource potential across the basin.
The project is currently finalizing the front-end engineering and design (FEED), with continued work focused on strengthening capital efficiency, execution planning, and overall project robustness, Equinor says.
Equinor and Shell will continue to mature the project towards an investment decision subject to market conditions, regulatory approvals and the companies’ internal decision processes.
First discovered in 2013, the Bay du Nord field, later joined by the Cambriol field (2020), lies approximately 500 kilometers of St. John’s, Newfoundland and Labrador, in water depths ranging from 600 to 1,170 meters. Potential future tiebacks include the Cappahayden, Harpoon, and Baccalieu fields.
A final investment decision is planned for early 2027, with first oil expected in 2031.
