BP acquires interest in Canada’s Bay du Nord

Canada

ST. JOHN'S, June 14, 2022 – BP has signed a deal with Cenovus Energy to acquire its 35% stake in the deep-water Bay du Nord project in Canada, the British super-major announced on Monday.

The deal will also see BP sell its 50% interest in the Sunrise oil sands project in Alberta, Canada, to Cenovus Energy.

The transaction includes Cenovus Energy paying BP USD 467 in cash with a USD 467 contingent payment that expires after two years.

Equinor operates the Bay du Nord project with a 65% stake. The venture will consist of an FPSO extracting oil from the Flemish Pass basin offshore St. John’s in Newfoundland and Labrador, Canada.

The development is the first deep-water project in Canada in water depths ranging from 1,000-1,200 kilometres. The play holds an estimated 300 million barrels of crude oil.