Shell Canada Energy Acquires 30% Stake in Bay du Nord

Shell Canada Energy has signed an agreement to acquire a 30% non-operated interest in the Bay du Nord offshore oil project located in the Flemish Pass basin, approximately 500 kilometers offshore Newfoundland and Labrador, Canada. Equinor will retain a 70% stake and continue as the project operator.

The partnership aims to facilitate risk sharing and capital allocation as the project completes its front-end engineering and design phase. The companies are working toward a final investment decision targeted for early 2027, though the decision remains subject to regulatory approvals, internal investment criteria, and market conditions.

The development is designed as a phased subsea project tied back to a floating production, storage and offloading vessel. It has a planned gross production capacity of 160-175 kboe/d and is expected to produce over 400 million barrels of oil in its initial phase. First oil is anticipated in 2031.

The project requires an estimated initial investment of approximately CAD 14 billion. If developed, it is projected to generate CAD 20 billion in government revenues and contribute approximately CAD 50 billion to the gross domestic product.