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, with an investment decision currently targeted for early 2027.

Under the terms of the agreement, Equinor will retain a 70% interest in the project and remain the operator.

Strategic Project for Equinor

Equinor described Bay du Nord as a strategic project, citing a high-quality resource base and the potential to create significant long-term value.

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

According to Equinor, the transaction supports the company's approach to portfolio management, capital allocation, and risk sharing in large-scale developments.

Project Location and Development Concept

Bay du Nord is located in the Flemish Pass basin, approximately 500 kilometres east of St. John's, Newfoundland and Labrador. The development concept is based on a floating production, storage, and offloading vessel (FPSO) with subsea tiebacks and broader resource potential across the basin.

The initial phase of the project includes the Bay du Nord discovery, made in 2013, and the Cambriol discovery, made in 2020. Potential future tiebacks include Cappahayden, Harpoon, and Baccalieu. Water depth in the area ranges from 600 to 1,170 metres.

Estimated recoverable resources for the initial phase exceed 400 million barrels of oil. The investment is estimated at approximately USD 9.83 billion. First oil is expected in 2031.

Engineering Work Underway

The project is currently finalising the front-end engineering and design (FEED), with continued work focused on strengthening capital efficiency, execution planning, and overall project robustness.

Equinor noted that constructive engagement with provincial and federal governments has supported progress through key milestones and will remain important as the project continues to advance.

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.

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