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.