Equinor Acquires Remaining Stake in Canadian Offshore Development
BP (LSE:BP.) has agreed to sell its 37.2% interest in the Bay du Nord offshore oil project in Canada to joint venture partner Equinor, giving the Norwegian energy company full ownership of the development. The companies did not disclose the financial terms of the agreement.
Following completion of the transaction, Equinor intends to continue advancing the project with the aim of reaching a final investment decision in early 2027.
Portfolio Reshaping Remains a Priority for BP
The disposal forms part of BP’s broader strategy to streamline its asset portfolio, strengthen profitability, reduce debt and concentrate investment on oil and gas projects expected to deliver stronger returns.
Despite the sale, BP will retain full ownership of two offshore exploration licences in Newfoundland and Labrador, maintaining its presence in the Canadian offshore sector.
Bay du Nord Represents Major Offshore Development
Located in the Flemish Pass Basin, approximately 500 kilometres east of St. John’s, Newfoundland and Labrador, the Bay du Nord project is expected to produce more than 400 million barrels of oil during its initial development phase.
The project is designed around a floating production, storage and offloading (FPSO) vessel linked to subsea production infrastructure.
Equinor Continues Toward 2031 Production Target
Equinor is targeting first oil from Bay du Nord in 2031, with total development costs estimated at around C$14 billion.
The acquisition strengthens Equinor’s control over one of Canada’s largest planned offshore oil developments as it moves toward the next stage of project execution.
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