BP Plc NYSE:BP, a global oil and gas major, is moving to sell its nearly 40% non-operated interest in the Bay du Nord oil project offshore eastern Canada to Equinor ASA NYSE:EQNR, the Norwegian energy company that operates the development. The transaction comes as BP continues to streamline its portfolio and focus capital on opportunities it believes may create stronger value. BP Executive Vice President of upstream Gordon Birrell said the company was proud of its partnership with Equinor and the work completed on Bay du Nord, but noted that BP is applying strict capital discipline in deciding where to allocate resources.
The value of the deal was not disclosed, and BP said it will work with Equinor and relevant stakeholders to transfer its interest in the project. Bay du Nord is a group of oil discoveries in the Flemish Pass Basin, located about 500 kilometers northeast of St. John's, Newfoundland and Labrador. The project has an estimated 400 million barrels of oil in place and is expected to begin production in 2031, making it a potentially meaningful long-cycle offshore asset for investors watching future Canadian oil supply.
For BP investors, the sale may be viewed as another step in the company's effort to simplify its asset base while keeping capital allocation more selective. For Equinor, the deal could strengthen its position in a project it already operates, though the source did not provide financial terms or further details on how the ownership change may affect development plans. The move suggests BP is continuing to prioritize portfolio discipline over retaining exposure to every large-scale upstream opportunity.