Equinor and Shell have signed an agreement for Shell to acquire a 30 per cent interest in the Bay du Nord oil development offshore Newfoundland and Labrador, Canada, supporting the project’s progress towards a final investment decision targeted for early 2027.

Equinor will retain a 70 per cent stake and continue as operator of the project, located in the Flemish Pass basin approximately 500 kilometres offshore Newfoundland and Labrador.

“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," says Philippe Mathieu, Executive Vice President for Exploration and Production International.

The transaction supports Equinor’s portfolio management strategy, enabling capital allocation and risk sharing for large-scale developments.

Bay du Nord is designed around a floating production, storage and offloading (FPSO) vessel, supported by subsea tiebacks and potential additional resources across the basin.

The project is currently completing its front-end engineering and design (FEED) phase, with work focused on improving capital efficiency, execution planning and overall project robustness.

Equinor said engagement with provincial and federal governments has supported progress through key milestones and will remain important as development advances.

The companies will continue preparing the project for an investment decision, subject to market conditions, regulatory approvals and their respective internal decision-making processes. -OGN/TradeArabia News Service