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 the UK-headquartered BP’s stake in the Canadian project.
Equinor has reached an agreement with BP to acquire its interest in the Bay du Nord project offshore Canada, increasing its ownership to 100%. While the transaction reflects the UK firm’s ongoing portfolio simplification, it provides the Norwegian giant with increased flexibility to continue maturing the project toward a final investment decision (FID) planned for early 2027.
This move comes months after BW Offshore signed a 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, approximately 500 kilometres offshore Newfoundland and Labrador.
The development concept is based on an FPSO with subsea tie-backs and broader resource potential across the basin. The project has advanced to the FEED stage, with continued work focused on strengthening capital efficiency, execution planning, and overall project robustness.
Equinor explains that the constructive engagement with provincial and federal governments has supported progress through key milestones and will remain important as the project continues to advance. The firm will continue to mature the project, subject to market conditions, regulatory approvals and internal approvals.
Philippe Mathieu , Equinor’s Executive Vice President for Exploration and Production International, commented: “Over the past few years, we have strengthened Bay du Nord by improving the business case and reducing key risks.
“This transaction reflects our confidence in the project as we continue maturing it towards a final investment decision. We will seek opportunities to bring in partners as part of the project’s further development.”
The $10-billion Bay du Nord oil project, previously shelved in 2023, was reignited in January 2025, when Equinor handed out pre-FEED work to BW Offshore and Altera Infrastructure, followed by the former’s selection as the preferred FPSO bidder for the project in Canada’s Flemish Pass basin, around 500 kilometers northeast of St. John’s.
With a planned investment of around CAD $14 billion ($9.87 billion), the first oil is expected in 2031. The original hydrocarbon discovery, made in 2013, is estimated to hold around 300 million barrels of light, high-quality oil. Other finds followed in 2014, 2016, and 2020.
The discoveries included in the initial phase are Bay du Nord and Cambriol, with potential future tie-backs being Cappahayden, Harpoon, and Baccalieu. Salt Ship Design disclosed its hull design for the project’s harsh-environment FPSO in 2022.