Shell plc and Equinor ASA have signed an agreement under which Shell will acquire a 30% interest in the Bay du Nord project offshore Newfoundland and Labrador in Canada.

Equinor will retain a 70% interest and remain as the operator of the project.

The transaction supports the continued maturation of Bay du Nord towards an investment decision currently targeted for early 2027, Equinor said.

Bay du Nord is in Flemish Pass basin, about 500 km offshore Newfoundland and Labrador in 600–1,170 m of water. The development concept is based on a floating production, storage, and offloading vessel (FPSO).

Bay du Nord and Cambriol discoveries are included in the initial phase, with potential future subsea tiebacks to Cappahayden, Harpoon, and Baccalieu.

Estimated recoverable resources in the initial phase are more than 400 MMbbl of oil. First oil is anticipated in 2031, Equinor said.

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

Engagement with provincial and federal governments has supported progress through key milestones, according to the company.

Equinor and Shell said they will continue to mature the project towards an investment decision subject to market conditions, regulatory approvals, and the companies’ internal decision processes.

The project will require a toal investment of about $14 billion (Can.; US$12.6 billion), Equinor said.