Shell acquires 30% non-operated interest in Bay du Nord project

Moscow, October 9 – Neftegaz.RU. Shell Canada Energy, an affiliate of Shell plc has reached an agreement with Equinor to acquire a 30% non-operated interest in the Bay du Nord project. Equinor will retain a 70% interest and remain as the operator of the project.

The transaction provides Shell with an attractive entry point, with expected returns above our hurdle rate, and exposure to an established resource base with potential longer-term growth, consistent with our disciplined approach to building a competitive portfolio.

The concept is a phased subsea development tied back to a floating production, storage and offloading vessel (FPSO), with gross production capacity planned to be 160-175 kboe/d and first oil anticipated in 2031.

The project remains pre-FID, and any future investment decision will be subject to Shell’s investment criteria and will need to compete for capital within our portfolio.

The Bay du Nord project is located offshore Newfoundland and Labrador, Canada.

As a reminder, in July bp agreed to sell its stake in the Bay du Nord project on the continental shelf off Newfoundland and Labrador (Canada) to Equinor.

About Shell Canada Energy

• it is an integrated energy company with all of Shell’s global businesses represented, including Upstream, Integrated Gas, Downstream, and Renewables and Energy Solutions;
• this includes everything from exploration, gas production, refining and manufacturing, to providing fuels and developing energy solutions for customers.