British Petroleum (BP) has sold its stake in the Bay du Nord offshore oil project in Canada to Equinor (EQNR) for an undisclosed sum.
Equinor will become the sole owner of Bay du Nord after acquiring BP’s 37.2% stake. The Norwegian energy firm plans to advance the project toward a final investment decision in 2027.
In a statement, British Petroleum said that the sale is part of its efforts to improve profitability, reduce debt, and focus capital on higher-return oil and gas projects.
British Petroleum said it plans to retain its 100% ownership of two exploration offshore oil licenses it has in Newfoundland.
The Bay du Nord project is located in the Flemish Pass Basin about 500 kilometers east of St. John’s, Newfoundland. It is expected to tap more than 400 million barrels of oil.
Equinor is investing an estimated $14 billion in Bay du Nord and has said that it is targeting first oil from the project in 2031.
EQNR stock has risen 30% this year to trade at $32.04 U.S. per share.
