Equinor buys BP out of $10bn Bay du Nord project

Equinor Norwegian energy major Equinor has reached an agreement with supermajor BP to acquire its interest in the Bay du Nord project offshore Canada, increasing its ownership to 100%. The transaction reflects BP’s ongoing portfolio simplification and provides Equinor with increased flexibility to continue maturing the project towards a final investment decision planned for early 2027. The project has advanced to FEED, and first oil is expected in 2031. “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. We will seek opportunities to bring in partners as part of the project’s further development,” said Philippe Mathieu, EVP for international exploration and production at Equinor. Bay du Nord is in the Flemish Pass basin, approximately 500 km offshore Newfoundland and Labrador. The development concept is based on an FPSO with subsea tiebacks and broader resource potential across the basin. Discovered in 2013, it represents a generational opportunity for Canada’s offshore, one that could open a new deepwater basin and shape the province’s energy industry for decades to come. With an estimated investment of around CAD 14bn ($9.85bn), Bay du Nord has the potential to generate significant value for governments and communities, contributing billions in revenues and thousands of jobs across construction, subsea fabrication, drilling, logistics, marine operations, maintenance, and more. Apart from the estimated initial investment, the government revenues are expected to be around CAD 20bn ($14bn), with a total GDP contribution of around CAD 50bn ($35.1bn). In a separate statement, BP said that the transaction was consistent with BP’s continued focus on portfolio simplification and disciplined capital allocation. “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,” stated Gordon Birrell, EVP for upstream at BP. Bojan Lepic Bojan is an English language professor turned journalist with years of experience covering the energy industry with a focus on the oil, gas, and LNG industries as well as reporting on the rise of the energy transition. Previously, he had written for Navingo media group titles including Offshore Energy Today and LNG World News. Before joining Splash, Bojan worked as an editor for Rigzone online magazine. Read Next July 7, 2026 EU antitrust law and the China trade question July 6, 2026 d’Amico fixes MR2 for two years July 6, 2026 Performance Shipping locks in $39m Aramco deal July 6, 2026 Fincantieri expands underwater business with four acquisitions July 6, 2026 New Zealand opens door to offshore wind investment