Equinor Acquires BP Stake to Solely Own Bay du Nord Project

Equinor ASA has agreed to acquire the remaining interest of BP PLC in the Bay du Nord offshore oil project located in the Flemish Pass basin. The transaction involves an average working interest of 37.2% across 10 licenses, increasing Equinor's ownership to 100%. While the financial terms were not disclosed, the sale is subject to customary regulatory approvals.

BP is divesting the stake to simplify its global upstream portfolio and maintain strict capital discipline. Despite exiting the Bay du Nord project, BP will retain 100% interest in two other regional exploration licenses, EL 1166 and EL 1170. Equinor, as the project operator, intends to use the consolidated ownership to gain more flexibility as it matures the project toward a final investment decision.

Reports on the timing of the investment decision vary, with some sources targeting early 2027 and others indicating early next year. The development is expected to be Canada's first deepwater oil project, targeting over 400 million barrels of recoverable resources with first oil anticipated by 2031. Total costs for the project are estimated between $9.85 billion and $16 billion.

Newfoundland and Labrador Premier Tony Wakeham affirmed his confidence in the project's future. Under a previous agreement, Equinor is expected to provide the province with a $200-million fabrication fund for a floating dry dock and up to $6.4 billion in revenue.