Business · Energy & Commodities · 2 days ago
Shell to buy 30% stake in proposed Bay du Nord oil project
Shell has agreed to buy a 30% stake in the proposed Bay du Nord oil project off Newfoundland.
Norway-based Equinor will keep a 70% operating interest and continue to lead the development.
The project would be in the Flemish Pass Basin, about 500 kilometres east of St. John’s, in water up to 1,170 metres deep.
It would be farther from shore than any other offshore oil project in the world and would be Canada’s first deepwater oil development if it goes ahead.
Equinor estimates the first phase could produce 400 million barrels of oil, with production expected to begin in 2031.
About three months ago, BP announced a deal to sell its 37.2% interest in the project to Equinor.
Equinor is expected to decide early next year whether to proceed with the $14-billion development, and the companies have not disclosed the price Shell will pay.
Shell has agreed to buy a 30 per cent stake in Equinor’s proposed Bay du Nord oil project off Newfoundland.
Equinor will retain a 70 per cent operating interest and continue to lead the development.
The project is estimated to cost $14 billion, and Equinor is expected to decide early next year whether to proceed.
Bay du Nord would be located in the Flemish Pass Basin, about 500 kilometres off the East Coast of St. John’s.
If it goes ahead, Bay du Nord would be Canada’s first deepwater oil development.
- Who
- Shell Canada and Equinor
- What
- Shell agreed to buy a 30 per cent stake in the proposed Bay du Nord oil project.
- When
- The agreement was announced on Oct. 9, 2026; Equinor is expected to decide early next year whether to proceed.
- Where
- The Flemish Pass Basin, about 500 kilometres off the East Coast of St. John’s, Newfoundland and Labrador.
- Why
- Shell described the project as offering an established resource base and potential for longer-term growth; Equinor said Shell’s entry strengthens the project.
This story does not have two clearly opposing sides.
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.
BP announced a deal to sell its 37.2 per cent interest in Bay du Nord to Equinor.
Equinor announced an agreement for Shell to buy a 30 per cent stake in Bay du Nord.
Equinor is expected to decide whether to proceed with the proposed development.
First oil is expected if the project proceeds.
- Shell stake
- 30 per cent
- Equinor operating interest
- 70 per cent
- Estimated project cost
- $14 billion
- Distance from St. John’s
- About 500 kilometres
- Estimated oil in the first development phase
- 400 million barrels
- Expected first oil
- 2031
Sources
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