Shell to Take 30% Stake in Equinor's Bay du Nord Project off Canada
October 9, 2026
Equinor has signed an agreement to sell a 30% interest in its Bay du Nord offshore oil project in Canada to Shell, bringing in a new partner as the companies work towards a final investment decision in early 2027.
Under the agreement, Equinor will retain a 70% stake and remain operator of the project, located approximately 500 kilometers offshore Newfoundland and Labrador in the Flemish Pass basin.
The development, estimated to require an investment of around $9.8 billion (C$14 billion), is expected to produce its first oil in 2031, subject to regulatory approvals, market conditions and the companies' investment decisions.
Bay du Nord is planned as a phased subsea development connected to a floating production, storage and offloading (FPSO) vessel, with estimated recoverable resources exceeding 400 million barrels of oil in its initial phase.
In April 2026, BW Offshore has signed a front-end engineering and design (FEED) agreement with Equinor for the Bay du Nord development offshore Newfoundland and Labrador, Canada.
The agreement follows BW Offshore’s selection as preferred bidder for the FPSO and marks the next phase of the project ahead of a potential final investment decision in 2027.
The first phase will include the Bay du Nord and Cambriol discoveries, while Cappahayden, Harpoon and Baccalieu have been identified as potential future subsea tiebacks.
The project is located in water depths ranging from 600 to 1,170 meters.
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“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,” said Philippe Mathieu, Equinor's Executive Vice President for Exploration and Production International.
The project is currently in the final stages of FEED, with work focused on capital efficiency, execution planning and preparations for a potential investment decision.
Equinor and Shell will continue advancing the development in consultation with provincial and federal authorities, with the investment decision subject to regulatory approvals and internal company processes.
