Equinor (EQNR) has signed an agreement to sell a 30% interest in the Bay du Nord offshore oil project in Canada to Shell (SHEL), the company said Friday.

Equinor will retain a 70% stake and continue as the project's operator, it said.

The project, located in the Flemish Pass basin about 500 kilometers offshore Newfoundland and Labrador, is designed around a floating production, storage and offloading vessel with subsea tiebacks, Equinor said.

A final investment decision for Bay du Nord is currently targeted for early 2027, subject to market conditions, regulatory approvals and the companies' internal decision processes, the company said.

Financial terms were not disclosed.

Equinor shares were 1.5% higher in early Friday trading, while Shell shares were up 0.6%.

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