Shell to take a slice of Equinor's $10 billion oil project in Canada

Shell Canada Energy, an affiliate of UK-headquartered energy giant Shell, has reached an agreement with Norway's Equinor to acquire a 30%...

2 minutes read LinkedIn X Email Illustration of the Bay du Nord field, including potential future subsea tie-backs.

Source: Equinor Shell Canada Energy, an affiliate of UK-headquartered energy giant Shell, has reached an agreement with Norway's Equinor to acquire a 30% non-operated interest in the Bay du Nord oil project located off the coast of Newfoundland and Labrador, Canada.

Equinor will retain a 70% interest and remain the operator of the project located in the Flemish Pass basin, approximately 500 kilometers offshore Newfoundland and Labrador, in water depths between 600 and 1,170 meters.

2 min read The transaction supports the project's maturation towards the final investment decision (FID), expected in early 2027, subject to market conditions, regulatory approvals and the companies’ internal decision processes.

"The transaction provides Shell with an attractive entry point, with expected returns above our hurdle rate, and exposure to an established resource base with potential longer-term growth, consistent with our disciplined approach to building a competitive portfolio," Shell reported.

According to Shell, as the project remains pre-FID, any future investment decision will be subject to the company's investment criteria and will need to compete for capital within its portfolio.

The project concept is a phased subsea development tied back to a floating production, storage and offloading vessel (FPSO), with gross production capacity planned to be 160-175 kboe/d and estimated recoverable resources in the initial phase including more than 400 million barrels of oil.

2 minutes read LinkedIn X Email Illustration of the Bay du Nord field, including potential future subsea tie-backs.

Source: Equinor Shell Canada Energy, an affiliate of UK-headquartered energy giant Shell, has reached an agreement with Norway's Equinor to acquire a 30% non-operated interest in the Bay du Nord oil project located off the coast of Newfoundland and Labrador, Canada.

Equinor will retain a 70% interest and remain the operator of the project located in the Flemish Pass basin, approximately 500 kilometers offshore Newfoundland and Labrador, in water depths between 600 and 1,170 meters.

2 min read The transaction supports the project's maturation towards the final investment decision (FID), expected in early 2027, subject to market conditions, regulatory approvals and the companies’ internal decision processes.