Norwegian state-owned energy giant Equinor has made a move to become the sole owner of an oil development off the coast of Newfoundland and Labrador by acquiring UK-based BP’s stake in the Canadian project.
Equinor has reached an agreement with BP to acquire its stake in… Bay du Nord The offshore project in Canada, increasing its ownership to 100%. While the deal reflects the ongoing simplification of the British company’s investment portfolio, it provides the Norwegian giant with increased flexibility to further mature the project towards a Final Investment Decision (FID) planned for early 2027.
The move comes months after BW Offshore I fell Front-end engineering and design (FEED) contract for the project’s floating production, storage and offloading (FPSO) unit. Bay du Nord is located in the Flemish Pass Basin, about 500 kilometers offshore Newfoundland and Labrador.
The development concept is based on an FPSO with subsea linkages and broader resource potential across the basin. The project has advanced to the FEED phase, with continued work focused on enhancing capital efficiency, execution planning, and overall project strength.
Equinor explains that constructive engagement with provincial and federal governments has supported progress through key milestones and will remain important as the project continues to move forward. The company will continue to develop the project, subject to market conditions, regulatory and internal approvals.
Philip MathieuEquinor’s Executive Vice President, International Exploration and Production, commented: “Over the past few years, we have strengthened Gulf du Nord by improving the business case and reducing key risks.
“This transaction reflects our confidence in the project as we continue to mature it towards a final investment decision. We will look for opportunities to bring on partners as part of the further development of the project.”
The former $10 billion North Bay oil project On the shelf In 2023, it was It flared up again In January 2025, when Equinor handed over the upfront FEED business to BW Offshore and Altera Infrastructure, followed by the former to choose As FPSO’s preferred bidder for the project in Canada’s Flemish Pass Basin, about 500 kilometers northeast of St. John’s.
With a planned investment of about C$14 billion ($9.87 billion), the first oil discovery is expected in 2031. The original hydrocarbon discovery, made in 2013, is estimated to contain about 300 million barrels of high-quality light oil. Other discoveries followed in 2014, 2016 and 2020.
The discoveries included in the initial phase are Gulf du Nord and Cambriol, with potential future connections being Capahidden, Harpoon and Bacaleo. Salt Ship Design has revealed its hull design For the harsh environment of the FPSO project in 2022.
Boost your brand with marine energy ⤵️
Steal the spotlight and establish your brand in the heart of the outside world!
Join us to make a greater impact and grow your presence at the core of the marine energy community!
