BP Sells Stake in Bay du Nord Oil Project, Equinor Becomes Sole Owner
BP Divests Bay du Nord Stake to Equinor: Deal Details and Project Outlook
By Stephanie Kelly
BP's Strategic Portfolio Shift
LONDON, July 6 (Reuters) - BP has agreed to sell its stake in the Bay du Nord offshore oil project in Canada to partner Equinor as the British energy major sharpens its focus on higher-return opportunities.
Transaction Overview
Under the agreement, Norway's Equinor will become the sole owner of Bay du Nord, acquiring BP's 37.2% stake, the companies said on Monday without disclosing financial terms.
BP's Portfolio Reshaping
The agreement represents another step in BP's efforts to reshape its portfolio to improve profitability, reduce debt and focus capital on higher-return oil and gas projects. BP will retain its 100% ownership of two exploration offshore licences in the Canadian province of Newfoundland and Labrador.
Bay du Nord Project Details
Equinor's Next Steps
Equinor will seek to advance the project toward a final investment decision in early 2027.
Project Location and Development
The Bay du Nord development lies in the Flemish Pass Basin about 500 km (310 miles) east of St. John's in Newfoundland and Labrador. Expected to tap more than 400 million barrels of oil in its initial phase, the project is based on a floating production, storage and offloading vessel (FPSO) with subsea tiebacks.
Investment and Production Timeline
Equinor is targeting first oil for 2031, with required investment estimated at about C$14 billion ($9.84 billion).
($1 = 1.4227 Canadian dollars)
(Reporting by Stephanie KellyEditing by David Goodman)
