Equinor to acquire BP’s stake in Bay du Nord offshore oil project

Equinor announced on Monday that it will buy BP’s remaining interest in the Bay du Nord development, lifting its ownership from a majority position to 100 per cent. The deal removes the last non‑operating partner from Canada’s first deep‑water oil project and puts the Norwegian firm in full control just as it prepares a final investment decision for early 2027. For Newfoundland and Labrador, the move revives expectations of a multi‑billion‑dollar revenue stream and a new fabrication hub on the east coast.

BP, which held a working interest of roughly 37 per cent across ten licences linked to Bay du Nord, said it will exit the megaproject as part of a broader “portfolio simplification” and “strict capital discipline”. No financial terms were disclosed. The transaction is subject to customary conditions and approvals and will be reflected in BP’s second‑quarter results.

Media additions

“This transaction reflects our confidence in the project,” Philippe Mathieu said in a statement. “We will seek opportunities to bring in partners as part of the project’s further development.”

Philippe Mathieu, executive vice‑president of exploration and production, via The Globe and Mail

Mathieu’s comments echo Equinor’s earlier assessment that it has “reduced key risks for Bay du Nord in recent years, thereby strengthening the project’s business case”. Holding the full interest, the company says, will give it “more flexibility” as it weighs “optimisations” and the timing of a final investment decision (FID). In internal briefings, Equinor has already moved the project into the front‑end engineering and design (FEED) phase and is holding “constructive” conversations with both provincial and federal officials.

“We’re proud of our partnership with Equinor and the work we’ve done together to develop the Bay du Nord project,” Gordon Birrell said. “However, BP is exercising strict capital discipline, allocating it to the opportunities that create the most value for BP.”

Gordon Birrell, executive vice‑president for upstream, via Saltwire

Premier Tony Wakeham welcomed the news, calling it “another positive step forward” and a “strong vote of confidence in Bay du Nord”. He noted that Equinor’s willingness to shoulder the entire project “makes clear” its long‑term commitment to the offshore sector.

“It’s a sign of confidence of the project that they’re willing to take this on themselves,” Wakeham said.

Tony Wakeham, Premier of Newfoundland and Labrador, via The Globe and Mail

Wakeham added that the province’s March agreement with Equinor foresees up to $6.4 billion in direct revenue over the first 25‑year phase, through royalties, taxes and a possible equity stake. The deal also earmarks a $200 million “fabrication fund” to build a floating dry‑dock capable of servicing ships over 18,000 tonnes, a move that could anchor a new supply‑chain ecosystem in the province.

Bay du Nord sits in the Flemish Pass basin, about 500 km east of St. John’s, in water depths ranging from 600 to 1,170 metres. Initial estimates put recoverable oil at roughly 400 million barrels, with earlier projections of up to 300 million barrels over a 30‑year life. A 2020 discovery nearby could push potential output toward one billion barrels if tie‑in projects materialise.

The project, valued at around $14 billion (some reports cite $16 billion), was placed on ice in 2023 after market volatility spiked costs.

Key milestones at a glance

• 6 July 2026 – BP issues press release confirming exit; Equinor confirms acquisition