Shell has agreed to acquire a 30% interest in the Bay du Nord project, an offshore oil development in the Flemish Pass basin around 500km from Newfoundland and Labrador.
The agreement, signed with Equinor, will see Shell join as a partner in the planned project, while Equinor will retain a 70% stake and operatorship.
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The Bay du Nord project is currently in the final stages of front-end engineering and design.
The companies are focusing on improving capital efficiency, execution planning and overall project viability as they aim to make a final investment decision by early 2027.
The project’s development concept involves a floating production, storage and offloading vessel with subsea tiebacks.
The partners plan to advance the project subject to market conditions, regulatory approvals and companies’ internal decision processes.
Equinor exploration and production international executive vice-president Philippe Mathieu 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 Bay du Nord area includes a series of oil discoveries, starting with Bay du Nord in 2013 and followed by Cambriol in 2020.
The initial phase is expected to target recoverable resources exceeding 400 million barrels (mbbl) of oil, with an estimated total investment of around $9.8bn (C$14bn).
First oil is currently anticipated in 2031 if the project proceeds as planned.
Potential future tiebacks could include discoveries at Cappahayden, Harpoon and Baccalieu.
Equinor noted that engagement with provincial and federal governments has been constructive throughout the planning stages.
The project’s backers say Bay du Nord could generate significant government revenues and create thousands of jobs in areas such as construction, subsea fabrication, drilling, logistics and maintenance.
Equinor continues to collaborate with local suppliers, contractors and authorities to match project requirements with Newfoundland and Labrador’s capabilities and resources.
In August 2026, the company begun production from the Troll phase three, stage two subsea project in the Norwegian North Sea.
