BP Sells Bay du Nord Stake to Equinor as Canada Offshore Project Advances
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BP has agreed to sell its stake in the Bay du Nord offshore oil project in Canada’s Flemish Pass Basin to Equinor, a move that gives the Norwegian energy company full ownership of the development.
The project, located about 500 kilometers offshore Newfoundland and Labrador, comprises 10 exploration licenses in which BP previously held an average 37.21% interest. The financial terms of the transaction were not disclosed.
With full ownership, Equinor said it remains on track to reach a final investment decision (FID) by 2027. The company continues to advance front-end engineering and design work, with a focus on improving capital efficiency, execution planning, and the overall viability of the project.
The Bay du Nord development is estimated to contain more than 400 million barrels of recoverable oil, making it one of Canada’s most significant offshore energy projects. It is also expected to become the province’s first deepwater oil development and its first standalone offshore hydrocarbon project since the Hebron field.
The project was discovered in 2013 but has been on hold since 2023 due to changing market conditions and rising development costs. Earlier this year, Equinor and the Government of Newfoundland and Labrador reached an agreement to revive the project, allowing the provincial government to acquire up to a 10% ownership stake.
Under the revised timeline, project approval is targeted for 2027, with first oil expected in 2031.
Despite exiting Bay du Nord, BP said it will retain full ownership of two offshore exploration licences in Newfoundland and Labrador. The company added that any financial impact from the sale will be reflected in its second-quarter results.
The divestment aligns with BP’s broader strategy to simplify its portfolio, strengthen its balance sheet, and focus capital on its core upstream and downstream businesses. The company is pursuing a target of $20 billion in asset sales by 2027 while also implementing cost-reduction measures across its operations.
