BP withdraws from Bay du Nord oil projects, leaving Equinor the sole owner

BP and Equinor have agreed to sell their stakes in the Bay du Nord oil project off the coast of Canada. The British energy giant is now focusing on opportunities with higher returns.

Equinor, a Norwegian company, will acquire BP's 37.2% share of Bay 'du Nord under the agreement. The companies did not disclose financial details.

This agreement is another step for BP in its efforts to reshape their portfolio and refocus capital on 'higher-return oil & gas?projects. BP will keep its 100% ownership in two offshore exploration licences located in Newfoundland & Labrador, Canada. Equinor said it would assess the opportunities to bring partners in as part of Bay du Nord’s further development.

The company will work to move the project forward in order to reach a final decision on investment by early 2027.

The Bay du Nord project is located in the Flemish Pass Basin, about 500 km (310 miles), east of St. John's. The project, which is expected to produce more than 400 million barrels in its initial phase, is based on an FPSO (floating production, storage, and offloading vessel) with subsea ties.

Equinor aims to produce first oil in?2021 with an estimated investment of C$14 billion (9.84 billion).

(source: Reuters)