Shell Agrees to Take 30% of Bay du Nord as FPSO Project Targets Early-2027 FID

Shell has agreed to acquire a 30% non-operated interest in Bay du Nord. Equinor will retain 70% and remain operator as the FPSO project advances through FEED toward an early-2027 FID.

Shell Canada Energy and Equinor signed an agreement on 9 October 2026 under which Shell will acquire a 30% non-operated interest in the Bay du Nord offshore oil project in Canada. Equinor will retain 70% and remain operator after closing. The parties did not disclose consideration, and their announcements describe a signed transaction rather than a completed transfer.

Bay du Nord lies in the Flemish Pass basin offshore Newfoundland and Labrador, about 500 kilometres east of St. John’s, in water depths of roughly 600-1,170 metres. The initial phase covers the Bay du Nord and Cambriol discoveries through a phased subsea development tied back to an FPSO, with Cappahayden, Harpoon and Baccalieu available as potential future tiebacks. Equinor estimates more than 400 million barrels of recoverable resources in the initial phase, approximately C$14 billion of investment, production capacity of about 160,000-175,000 barrels per day, and first oil in 2031.

The project remains pre-FID. Equinor said on 9 October that FEED is being finalised, with work focused on capital efficiency, execution planning and overall project robustness. The current target remains an investment decision in early 2027. Shell likewise said future investment remains subject to its internal criteria and competition for capital across its portfolio.

The FPSO scope is further advanced. Equinor selected BW Offshore as preferred bidder in September 2025, and BW Offshore signed the FEED agreement in April 2026. FEED is expected to run through the end of 2026, maturing the FPSO design, execution plan, delivery schedule, major subcontractor and vendor selections, and a firm commercial offer to Equinor. The unit is being developed for harsh sub-Arctic conditions, but neither company has announced a final FPSO contract award.

Shell’s entry is the second major ownership change this year. On 6 July, Equinor agreed to acquire bp’s interest, which would take Equinor to 100%, while saying it would seek partners as the project matured. Three months later, Shell agreed to take 30%.