Equinor Gives Shell 30 Percent Stake in Bay du Nord Project

Equinor and Shell have agreed to partner on the Bay du Nord offshore development in Canada, with Shell acquiring a 30 percent interest in the project off Newfoundland and Labrador. Announced on October 9, 2026, the agreement aims to advance development toward a final investment decision targeted for early 2027, while Equinor retains a 70 percent stake and operational control.

The transaction supports Equinor's strategy for managing its project portfolio, allocating capital and sharing risks in large-scale developments. The companies will continue evaluating the project, subject to market conditions, regulatory approvals and their respective internal decision-making processes.

Bay du Nord is located in the Flemish Pass basin, approximately 500 kilometers offshore Newfoundland and Labrador. According to Equinor, the development plan centers on a floating production, storage and offloading (FPSO) vessel connected to subsea infrastructure, with additional resource potential across the basin.

Philippe Mathieu, Equinor's Executive Vice President for Exploration and Production International, said the partnership would strengthen the project's development prospects.

"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," said Mathieu.

Equinor said the project is in the final stages of front-end engineering and design (FEED). Current work focuses on improving capital efficiency, refining execution plans and strengthening the project's overall robustness before an investment decision.

The company also said constructive engagement with provincial and federal governments has helped the project progress through key milestones. Continued cooperation with government authorities will remain important as development planning advances.

The planned investment decision remains targeted for early 2027, but the timeline and final commitment depend on market conditions, regulatory approvals and the companies' internal reviews. Equinor will remain the operator throughout the current development phase, retaining its majority interest following Shell's entry.