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 towards an investment decision currently targeted for early 2027.
Equinor will retain a 70% interest and remain as the operator of the project.
"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 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 kilometres offshore 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 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. 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.
- Discovery: Bay du Nord 2013, Cambriol 2020
- Location: Approximately 500 km east of St. John's, Newfoundland and Labrador
- Basin: Flemish Pass
- Water Depth: 600-1,170 metres
- Discoveries included in the initial phase: Bay du Nord and Cambriol
- Potential future tiebacks: Cappahayden, Harpoon, and Baccalieu
- Concept: Phased subsea development tied back to a floating production, storage and offloading vessel (FPSO)
- Estimated recoverable resources (initial phase): >400 million barrels of oil
- Investment: ~CAD $14 billion
- Final Investment Decision: planned early 2027
- First Oil (expected): 2031
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