Shell acquires 30% stake in Equinor’s Bay du Nord project

Shell PLC has agreed to acquire a 30% non-operated interest in the Bay du Nord project offshore Newfoundland and Labrador from Equinor. The acquisition, made through Shell Canada Energy, positions the company in the Flemish Pass basin development prior to a final investment decision.

Equinor will maintain its 70% interest and continue as the project operator. While the purchase price was not disclosed, Shell stated the move provides an attractive entry point with expected returns above its hurdle rate. The Bay du Nord project is designed as a phased subsea development utilizing a floating production, storage, and offloading vessel, with a projected gross production capacity of 160,000 to 175,000 barrels of oil equivalent per day.

First oil is anticipated in 2031, with the initial phase expected to tap over 400 million barrels of oil. The required investment for the project is estimated at approximately C$14 billion. A final investment decision is planned for early 2027, though Shell noted that any future commitment remains subject to its own internal investment criteria and capital competition.