Shell Wins Six Newfoundland Exploration Licences and Pledges More Than $210 Million

Shell won six exploration licences off Newfoundland's east and southeast coast covering more than 15,000 square kilometres and pledged more than $210 million in exploration work, the province's offshore energy regulator said. The Globe and Mail reported the awards on November 5, 2026.

Shell's Six Licences and Equinor Partnership

Shell is a London-headquartered integrated energy company with upstream oil and gas, LNG, refining and marketing operations. The Canada-Newfoundland and Labrador Offshore Energy Regulator said it received 10 successful bids in total, the first time since 2022 that companies have purchased exploration licences in the province. Spokesperson Alicia Curran said it was the largest number of successful bids since 2000.

Shell also partnered with Norwegian energy company Equinor on two other licences totalling 1,230 square kilometres, for a total work commitment of $30 million. Shell recently announced it was buying a 30-per-cent stake in Equinor's proposed Bay du Nord oil development off the coast of St. John's, which would be the first deepwater oil project in the country.

Equinor is expected to make a final decision early next year about whether to proceed with Bay du Nord, which would be about 500 kilometres off the coast of St. John's in the Flemish Pass Basin. Torgrim Reitan, the company's chief financial officer, told investors last week that the $14-billion development, as it is currently proposed, only involves some of Equinor's discoveries in the area, and there are opportunities for expansion. Bay du Nord is expected to extract more than 400 million barrels of oil.

OilCo, the province's oil and gas corporation, successfully bid on two licences, each for an offshore parcel of more than 2,700 square kilometres. Jim Keating, OilCo's chief executive officer, said the idea is to partner with interested oil companies on the licences and give them an opportunity beyond the annual call for bids to enter the province's oil industry. "By securing our exploration rights to these parcels, we can create alternative commercial entry points for these investors," Keating said in an interview.

Shell's Divestitures Alongside the Bid

Shell agreed in July 2026 to sell its South African downstream business, including 580 fuel stations plus wholesale, aviation and lubricants operations, to ADNOC Distribution for approximately $1 billion, according to akta.pro company records. The same records show Shell sold Jiffy Lube, the roughly 2,000-center North American fast oil-change chain, to Monomay Capital Partners for $1.3 billion. Shell also agreed to sell its 50% interest in the Na Kika platform and associated fields plus its 100% interest in the Coulomb tieback to Talos Energy and Ridgewood Energy for $1.7 billion, expected to close at the end of 2026.

Shell's Recent Deal Flow

On November 3, 2026, Shell agreed to sell its 16.67% non-operated interest in the North West Shelf project to ADNOC's XRG for $1.45 billion, a deal expected to close in the first half of 2027, MarketScreener reported. On November 2, 2026, Shell signed a long-term agreement with Green Sky Manara to buy about 150,000 tonnes annually of sustainable aviation fuel or HVO from a Nador West Med facility, Morocco World News reported. Metlen Energy & Metals also signed an LNG supply deal with Shell for six cargoes annually for five years starting in 2027, TradingView reported on November 2, 2026.

Bay du Nord Decision and Provincial Stake

Equinor is expected to make a final decision early next year on whether to proceed with Bay du Nord. The Newfoundland and Labrador government has said it is considering buying a stake in the project of up to 10 per cent. The province's offshore area is currently home to four oil installations, and Bay du Nord would be the fifth.