(World Oil) – bp has agreed to sell its non-operated interest in the Bay du Nord project offshore Newfoundland and Labrador, Canada, to operator Equinor, continuing its strategy of simplifying its upstream portfolio and focusing capital on higher-value opportunities.
The transaction includes bp’s interests across 10 licenses associated with the Bay du Nord development, representing an average 37.2% working interest. Financial terms were not disclosed, and the sale remains subject to customary regulatory approvals.
“We’re proud of our partnership with Equinor and the work we’ve done together to develop the Bay du Nord project,” said Gordon Birrell, bp’s executive vice president of Upstream. “However, bp is exercising strict capital discipline, allocating it to the opportunities that create the most value for bp.”
Bay du Nord is located in the Flemish Pass basin, approximately 500 km offshore Newfoundland and Labrador. Equinor serves as operator of the deepwater project.
bp said it will work with Equinor and other stakeholders to support the transfer of its interest. The company added that it will retain a 100% interest in two exploration licenses (EL 1166 and EL 1170) offshore Newfoundland and Labrador.
The divestment is the latest step in bp’s ongoing portfolio optimization efforts as the company continues to streamline its upstream business and prioritize capital allocation.
