Shell has agreed to buy a 30% stake in the Bay du Nord project through its affiliate Shell Canada Energy, as Equinor works towards a final investment decision in early 2027. The Canadian offshore development would remain operated by Equinor, whose holding would be 70%.
The agreement announced on 9 October 2026 covers a non-operated interest. Shell said it has yet to approve investment in the development: the project must satisfy its investment requirements and compete with other opportunities for funding.
Engineering work is nearing the end of the front-end engineering and design (FEED) stage. Equinor is continuing to refine spending efficiency and delivery plans. Proceeding to investment requires regulatory clearance and internal approvals at both companies, and also depends on market conditions.
The development envisages subsea facilities built in stages and connected to a floating production, storage and offloading vessel (FPSO). Shell puts planned gross capacity at 160–175 kboe/d, with production expected to begin in 2031. Estimated project investment is about CAD 14 billion.
In the Flemish Pass basin, roughly 500 kilometres offshore Newfoundland and Labrador, the development spans water depths of 600–1,170 metres. Bay du Nord and Cambriol form the initial phase, for which recoverable oil resources are estimated at more than 400 million barrels. Cappahayden, Harpoon and Baccalieu are identified as possible later tiebacks.
The new partnership follows bp’s exit from Bay du Nord in July.
