Equinor to buy BP’s stake in Bay du Nord oil project off Newfoundland coast

By the Editorial Team · Tuesday, July 7, 2026

Equinor ASA will acquire BP's entire 37 percent stake in the Bay du Nord offshore oil project, increasing its ownership to 100 percent and consolidating control over the $16 billion deepwater development. This full ownership gives Equinor greater flexibility to advance the project toward a final investment decision expected in early 2027, potentially boosting Newfoundland and Labrador's offshore oil production and economic revenue.

Norwegian energy company Equinor ASA announced on Monday that it will acquire the entire 37 percent stake held by British firm BP PLC in the Bay du Nord oil project off the coast of Newfoundland and Labrador. This transaction will increase Equinor's ownership to 100 percent, consolidating control over the proposed offshore development estimated to cost $16 billion.

Bay du Nord is located approximately 500 kilometers east of St. John’s in the Flemish Pass basin. The project, which aims to tap into deepwater oil reserves, was originally expected to produce up to 300 million barrels of oil over 30 years. However, recent nearby discoveries in 2020 could potentially raise production to nearly one billion barrels through additional tie-in projects. If developed, Bay du Nord would represent the province’s fifth offshore oil field and its first deepwater project.

Equinor is currently preparing for a final investment decision expected in early 2027. The company stated that full ownership would provide greater flexibility in advancing the project’s development. Philippe Mathieu, Equinor's executive vice-president of exploration and production, said the company has worked in recent years to reduce key risks associated with Bay du Nord, enhancing the project’s economic viability. Mathieu also indicated that while Equinor is taking full control, it remains open to bringing in partners during later stages.

Newfoundland and Labrador Premier Tony Wakeham welcomed the announcement, describing Equinor’s move as a sign of confidence in the project’s future. He noted the potential for improved efficiencies and the possibility of accelerating the development timeline. Wakeham highlighted ongoing positive discussions with Equinor and revealed an additional commitment from the company—a $200 million fabrication fund to establish a floating dry dock capable of servicing vessels weighing over 18,000 tonnes. The province has already initiated requests for proposals related to various components of the project.

This development follows Equinor’s earlier decision to pause the Bay du Nord project in 2023 due to market volatility and rising costs. At that time, Equinor had indicated it would reconsider the project’s economics and identify opportunities for optimization.

BP, which has been a partner in the project since its inception, expressed pride in its role optimizing Bay du Nord’s potential. However, Gordon Birrell, BP’s executive vice-president of upstream operations, said the company is focusing on capital discipline by prioritizing investments that generate the most value. BP will maintain full ownership of two other exploration licenses offshore Newfoundland and Labrador.

Under a binding agreement reached between Equinor and the provincial government in March, Bay du Nord’s first 25-year development phase could yield up to C$6.4 billion in direct revenue to Newfoundland and Labrador through royalties, taxes, and potential equity stakes.

As Equinor moves toward a final investment decision, the project remains closely watched as a significant potential contributor to the region’s offshore oil industry and economic growth.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.