Equinor, a Norwegian energy company, has finalized a deal with Shell for the acquisition of a 30% stake in the proposed Bay du Nord oil project located off the coast of Newfoundland. Equinor will maintain a 70% operating interest in the project, marking it as Canada’s inaugural deepwater oil venture.

The agreement with Shell follows BP’s recent announcement of selling its 37.2% stake in the project approximately three months ago. Equinor is set to make a decision on the $14 billion Bay du Nord development by early next year, with Executive Philippe Mathieu highlighting the partnership with Shell as a significant step towards the final investment decision.

Situated around 500 kilometers east of St. John’s, N.L., Bay du Nord is positioned further offshore than any other global offshore oil project. This development is crucial for the industry and signifies a milestone in deepwater oil exploration.

For more news updates, readers can download the free CBC News app and subscribe to receive push alerts for CBC Newfoundland and Labrador. Stay informed with the latest headlines by signing up for the daily newsletter and visiting the CBC Newfoundland and Labrador landing page.