BP has agreed to sell its stake in the Bay du Nord offshore oil project in Canada to partner Equinor as the British energy major sharpens its focus on higher-return opportunities.
Under the agreement, Norway's Equinor will become the sole owner of Bay du Nord, acquiring BP's 37.2 per cent stake, the companies said on Monday without disclosing financial terms.
The agreement represents another step in BP's efforts to reshape its portfolio to improve profitability, reduce debt and focus capital on higher-return oil and gas projects.
BP will retain its 100 per cent ownership of two exploration offshore licences in the Canadian province of Newfoundland and Labrador.
Equinor told Reuters it will assess opportunities to bring in partners as part of Bay du Nord's further development.
The company will seek to advance the project towards a final investment decision in early 2027.
The Bay du Nord development lies in the Flemish Pass Basin about 500 kilometres (310 miles) east of St. John's in Newfoundland and Labrador.
Expected to tap more than 400 million barrels of oil in its initial phase, the project is based on a floating production, storage and offloading vessel (FPSO) with subsea tiebacks.
Equinor is targeting first oil for 2031, with required investment estimated at about CA$14 billion ($9.84 billion).
(Reporting by Stephanie Kelly and Nerijus Adomaitis Editing by David Goodman and Tomasz Janowski)
