Equinor has agreed to sell a 30% interest in its Bay du Nord project to Shell, with the Norwegian operator retaining a 70% stake in the Flemish Pass basin development offshore Newfoundland and Labrador.

The deal arrives as the partners work toward a final investment decision currently targeted for early 2027.

Flemish Pass Assets Change Hands

Bay du Nord sits roughly 500 kilometres east of St. John's, Newfoundland and Labrador, in water depths ranging from 600 to 1,170 metres.

The development concept centres on a floating production, storage, and offloading vessel with subsea tiebacks, and Equinor points to broader resource potential across the basin beyond the initial phase.

That initial phase combines two discoveries: Bay du Nord, made in 2013, and Cambriol, made in 2020. Estimated recoverable resources for this first stage exceed 400 million barrels of oil.

Further tiebacks could eventually bring in the Cappahayden, Harpoon, and Baccaliu prospects, though these remain potential additions rather than committed scope.

Cost and Timeline Figures

The investment estimate for the project stands at approximately USD 9.83 billion.

First oil is expected in 2031, meaning the targeted early-2027 investment decision would leave a several-year construction window ahead of production start-up.

Under the transaction terms, Equinor remains the operator of the project alongside its retained 70% interest.

The company framed the deal as consistent with its approach to portfolio management, capital allocation, and risk sharing in large-scale developments.

Engineering Phase in Progress

Work on the front-end engineering and design, known as FEED, is currently being finalised.

Equinor said this work focuses on strengthening capital efficiency, execution planning, and overall project robustness as the development definition advances.

The company also credited constructive engagement with provincial and federal governments for supporting progress through key milestones and said such engagement will remain important as the project moves forward.

What Comes Next

The investment decision remains subject to market conditions, regulatory approvals, and the internal decision processes of both companies.

Equinor and Shell will continue to mature the project in the meantime.

Equinor characterised Bay du Nord as a strategic project for the company, citing a high-quality resource base and the potential to create significant long-term value.

Philippe Mathieu, Executive Vice President for Exploration and Production International, said the company was pleased to welcome Shell as a partner, adding that Shell's entry strengthens the project as maturation continues toward a final investment decision.