Equinor has signed an agreement to acquire bp’s non-operated stake in the Bay du Nord project in the Flemish Pass basin, located roughly 500km offshore Newfoundland and Labrador in Canada.

The deal will increase Equinor’s ownership to 100%, consolidating its position as operator and sole owner of the development.

Completion of the transaction remains contingent on standard closing conditions and regulatory clearances. The financial terms of the deal were not disclosed by the parties.

The Bay du Nord project consists of multiple oil discoveries. Its initial phase will target recoverable resources of more than 400 million barrels of oil in water depths ranging from 600m to 1,170m.

The project will be executed using a phased subsea development concept, tied back to a floating production, storage and offloading vessel.

Additional fields discovered, including Cambriol, as well as the potential for future tiebacks such as Cappahayden, Harpoon and Baccalieu, form part of the broader development plan across the basin.

Equinor exploration and production international executive vice-president Philippe Mathieu said: “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 [FID]. We will seek opportunities to bring in partners as part of the project's further development.”

BP has an interest in ten licences linked to Bay du Nord, representing an average working interest of 37.2%.

After the transfer, bp will continue to hold a 100% interest in two separate exploration licences offshore Newfoundland and Labrador, identified as EL 1166 and EL 1170.

BP upstream executive vice-president Gordon Birrell said: “We are proud of our partnership with Equinor and the work we have done together to develop the Bay du Nord project.

“However, bp is exercising strict capital discipline, allocating it to the opportunities that create the most value for bp.”

BP said that it will collaborate with Equinor and stakeholders to ensure an orderly transition of its interest.

The Bay du Nord project is currently at the front-end engineering and design (FEED) stage, with continued work focused on improving capital efficiency, execution planning and project robustness.

Equinor is targeting an FID in early 2027, subject to market and regulatory conditions, internal approvals and broader commercial considerations. If approved, first oil production is anticipated in 2031.

The estimated capital investment for Bay du Nord is C$14bn ($9.8bn).

The project is forecast to generate substantial revenues and support thousands of jobs during construction, subsea fabrication, drilling, logistics, marine operations and subsequent maintenance phases.

In April this year, BW Offshore signed a FEED agreement with Equinor for the Bay du Nord project.