BP sells Bay du Nord stake to Equinor, exiting Canadian offshore project

British energy major BP has agreed to sell its 37.2% interest in the Bay du Nord offshore oil project off Newfoundland and Labrador to partner Equinor, making the Norwegian firm the sole owner. The transaction does not disclose financial terms, and BP will retain 100% ownership of two other offshore licences in the province.

BP said the move is part of a portfolio reshaping strategy to improve profitability, reduce debt and redirect capital to higher‑return oil and gas projects. Equinor plans to advance Bay du Nord toward a final investment decision in early 2027, with first oil targeted for 2031 and an estimated investment of about C$14 billion (US$9.8 billion).

Environmental groups, including Sierra Club Canada, have warned that BP’s exit signals doubts about the project's viability and criticise public subsidies, urging a shift toward renewable energy infrastructure in the region.