Equinor Energy AS has agreed to acquire bp plc’s non-operated interest in the Bay du Nord project offshore Canada. bp holds interests across 10 licenses associated with the project, representing an average working interest of 37.212%. Financial details were not disclosed.

The acquisition will give Equinor full ownership of the asset as bp exits the project as part of its ongoing portfolio simplification, the companies said in separate releases July 6.

The deal reflects the operator's confidence in the project, said Philippe Mathieu, Equinor's executive vice-president for exporation and production, international. “Over the past few years, we have strengthened Bay du Nord by improving the business case and reducing key risks," Mathieu continued, noting the company will "seek opportunities to bring in partners as part of the project's further development."  

Bay du Nord

Discovered in 2013, Bay du Nord now includes a series of oil discoveries in the Flemish Pass basin, about 500 km offshore St. John’s, Newfoundland and Labrador, in water depth of 600–1,170 m. The development concept is based on a floating production, storage, and offloading vessel (FPSO) with subsea tiebacks and broader resource potential across the basin.

In 2023, Equinor shelved the deepwater project due to market conditions and cost inflation but continued to assess the area’s potential. The basin offers Jurassic reservoirs with high porosity, high permeability, and mature source rocks, with geology similar to findings in the Norwegian Continental Shelf, Equinor has said.

Earlier this year, while continuing its engagement with provincial and federal governments, Equinor signed a front-end engineering and design (FEED) with BW Offshore to advance design work. The operator aims to take final investment decision (FID) in early 2027. 

The envisioned initial phase, with investment of $14 billion (Can.), includes development of Bay du Nord and Cambriol discoveries with first oil planned for 2031. Estimated recoverable resources in the initial phase are estimated at 400 million bbl of oil. Potential future tiebacks include Cappahayden, Harpoon, and Baccalieu.  

Equinor’s acquisition of bp’s interest in the project remains subject to customary conditions and approvals. While no timeframe was given, bp said related accounting impacts will be communicated as part of its second-quarter results.

bp will continue to hold 100% interest in exploration licenses 1166 and 1170 offshore Newfoundland and Labrador.