Shell to take 30% stake in Equinor's Bay du Nord oil project in Canada

Shell Acquires 30% Stake in Equinor's Bay du Nord Offshore Oil Project

Details of the Bay du Nord Offshore Oil Project Acquisition

Overview of the Agreement

OSLO, Oct 9 (Reuters) - Equinor and Shell have signed an agreement under which Shell will acquire a 30% non-operating interest in the Bay du Nord project offshore Newfoundland and Labrador in Canada, the companies said on Friday.

Investment Decision Timeline

• "The transaction supports the continued maturation of Bay du Nord towards an investment decision currently targeted for early 2027," Equinor said in a statement.

Shell's Recent Investments in Canada

• The deal follows a string of investments and deals by Shell in Canada after its $16.4 billion acquisition of ARC Resources and the recent nod to Phase 2 expansion of its joint venture LNG Canada.

Project Background and Ownership

Location and Previous Ownership

• Bay du Nord, located in the Flemish Pass basin, approximately 500 kilometres (311 miles) offshore Newfoundland and Labrador, was previously owned by BP and Equinor before the former sold its 37.2% stake in July.

Regulatory Engagement

• Constructive engagement with provincial and federal authorities has supported progress through key milestones and will remain important as the project continues to advance, Equinor said.

Project Investment and Production Capacity

Financial Overview

• The project, with required investment estimated at about C$14 billion ($9.84 billion), has a planned gross production capacity between 160 and 175 kilo barrels of oil equivalent per day with the first oil anticipated in 2031.

Currency Exchange Rate

($1 = 1.4230 Canadian dollars)

(Reporting by Terje Solsvik; Editing by Nora Buli and Joe Bavier)