British energy company bp said Monday it agreed to sell its non-operated interest in the Bay du Nord offshore oil project in Canada to Norwegian energy firm Equinor.
The project is located offshore Newfoundland and Labrador, Canada.
The transaction is in line with bp’s continued focus on simplifying its portfolio and maintaining disciplined capital allocation, the company said in a statement.
“We’re proud of our partnership with Equinor and the work we’ve done together to develop the Bay du Nord project,” said Gordon Birrell, bp’s executive vice president for upstream.
“However, bp is exercising strict capital discipline, allocating it to the opportunities that create the most value for bp,” he added.
The financial terms of the transaction were not disclosed.
bp said it will work with Equinor and relevant stakeholders to support the orderly transfer of its interest.
With the acquisition, Equinor is expected to consolidate its position in the Bay du Nord project, where it has been the operator.
The deal comes as bp continues efforts to reshape its portfolio, improve returns, and focus investment on projects it sees as higher value.
By Mucahithan Avcioglu
Anadolu Agency
energy@aa.com.tr
