LONDON — BP says it has signed a deal to sell its interest in the Bay du Nord project offshore Newfoundland and Labrador to Equinor, the project’s Norwegian operator, as the London-based energy giant looks to simplify its global portfolio.
Financial terms of the deal were not immediately available.
“We’re proud of our partnership with Equinor and the work we’ve done together to develop the Bay du Nord project,” said Gordon Birrell, executive vice-president of upstream at BP.
“However, BP is exercising strict capital discipline, allocating it to the opportunities that create the most value for BP.”
Bay du Nord is in the Flemish Pass Basin, about 500 kilometres east of St. John’s at a water depth of up to 1,170 metres.
BP holds interests across 10 licences associated with the project, with an average working interest of 37.2 per cent. The sale is subject to customary conditions and approvals.
BP will continue to hold a 100 per cent interest in two exploration licences offshore Newfoundland and Labrador.
Equinor, two-thirds owned by the Norwegian government, aims to make a final investment decision on the project early next year, subject to market conditions and regulatory and internal approvals.
“Over the past few years, we have strengthened Bay du Nord by improving the business case and reducing key risks. This transaction reflects our confidence in the project as we continue maturing it towards a final investment decision,” said Philippe Mathieu, executive vice-president for international exploration and production at Equinor.
“We will seek opportunities to bring in partners as part of the project’s further development.”
Equinor estimates recoverable resources of more than 400 million barrels of oil in the project’s first phase, which is expected to cost $14 billion. First oil is targeted for 2031.
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This report by The Canadian Press was first published July 6, 2026.
