Shell plc has agreed to acquire a 30% non-operated interest in the Bay du Nord project offshore Newfoundland and Labrador from Equinor, taking a position in the Flemish Pass basin development ahead of a final investment decision.
The stake is being acquired through Shell Canada Energy. Equinor will retain the remaining 70% interest and remain operator of the project. No purchase price was disclosed.
Shell said the transaction gives it an attractive entry point into the project, with expected returns above its hurdle rate and provides exposure to an established resource base that carries potential for longer-term growth. The company described the acquisition as consistent with its disciplined approach to building a competitive portfolio.
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Bay du Nord is planned as a phased subsea development tied back to a floating production, storage and offloading vessel, with gross production capacity of 160,000 to 175,000 barrels of oil equivalent per day. First oil is anticipated in 2031. The initial phase is expected to tap more than 400 million barrels of oil, with required investment estimated at roughly C$14 billion.
The commitment comes with a notable caveat. The project has not yet been sanctioned, and Shell said any future investment decision will be subject to its own investment criteria and will have to compete for capital elsewhere in its portfolio.
The deal arrives three months after Equinor took full ownership of Bay du Nord by buying out BP’s interest. Equinor acquired BP’s 37.2% stake in that transaction, with financial terms also left undisclosed. At the time, Equinor said the purchase gave it more flexibility to mature the project toward a final investment decision planned for early 2027, and that it would look for opportunities to bring in partners.
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Shell’s entry follows a separate shake-up in the basin earlier this week. Suncor Energy agreed to sell its interests in Terra Nova, White Rose and West White Rose to UK North Sea producer Ithaca Energy for C$1.2 billion in cash, plus up to C$350 million in contingent payments tied to future oil prices. Ithaca intends to take over as operator of Terra Nova, with that transaction expected to close in the first half of 2027.
