17/07/2026 by Daniel Tait
UK-based energy company BP has announced an agreement that will see Equinor purchase its interest in the Bay du Nord project offshore of Canada.
Bay du Nord lies about 300 miles offshore of Labrador and Newfoundland in the Flemish Pass Basin. It is currently operated by Equinor, while BP’s working interest averages just over 37% over some 10 licences associated with the project. BP says it will keep its wholly owned interest in the EL 1166 and 1170 exploration licences, which are also located offshore of Labrador and Newfoundland.
BP says the move is consistent with its plan to simplify its portfolio and exercise strict capital allocation. The company has a target of raising $20 billion by divesting non-core assets by next year. In December last year, a deal was announced to sell a 65% stake in the Castrol business, which makes industrial and metalworking products. The $6 billion deal is a potential milestone in reaching its fundraising target, which will allow it to pay down some of its debt.
BP’s upstream executive vice president, Gordon Birrell, said:
“We’re proud of our partnership with Equinor and the work we’ve done together to develop the Bay du Nord project. However, BP is exercising strict capital discipline, allocating it to the opportunities that create the most value for BP.”
The company says it will collaborate with Equinor and other associated stakeholders to ensure a smooth transfer of its interest. The deal is of course subject to the usual regulatory approvals and other conditions.
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