BP acquires interest in Bay du Nord project offshore Newfoundland

BP has agreed to buy Cenovus Energy’s 35% stake in the undeveloped Bay du Nord project offshore Newfoundland and Labrador and sell its 50% interest in the Sunrise oil sands project in Alberta to Cenovus.

In Canada, BP will no longer have interests in oil sands production and will shift its focus to future potential offshore growth. The company currently holds an interest in six exploration licences in the offshore eastern Newfoundland region. The non-operated stake in the Bay du Nord project will expand BP’s position offshore eastern Canada.

The Bay du Nord project consists of several oil discoveries in the Flemish Pass Basin, about 500 km northeast of St. John’s. The project area is in water depths of approximately 1,200 metres, with recoverable reserves estimated to be about 300m barrels of oil.

Starlee Sykes, Sr. VP, Gulf of Mexico and Canada, said: “This is an important step in our plans to create a more-focused, resilient and competitive business in Canada. Bay du Nord will add sizeable acreage and a discovered resource to our existing portfolio offshore Newfoundland and Labrador.”

Subject to regulatory approvals, the transaction is expected to close in 2022.

Kim Biggar

Kim Biggar started writing in the supply chain sector in 2000, when she joined the Canadian Association of Supply Chain & Logistics Management. In 2004/2005, she was project manager for the Government of Canada-funded Canadian Logistics Skills Committee, which led to her 13-year role as communications manager of the Canadian Supply Chain Sector Council. A longtime freelance writer, Kim has contributed to publications including The Forwarder, 3PL Americas, The Shipper Advocate and Supply Chain Canada.
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