CALGARY – bp will exit oil sands production and increase its focus in E&P offshore eastern Canada, following negotiations with Cenovus Energy.
Under the terms of the deal, which could reach CAN $1.2 billion, bp will transfer its 50% non-operated interest in the Sunrise oil sands project to Cenovus and gain the latter’s 35% stake in the Bay du Nord project offshore Newfoundland and Labrador.
Bay du Nord project comprises various oil discoveries in the Flemish Pass Basin, 500 km northeast of St. John’s, in water depths ranging from 650 m to 1,170 m.
Operator Equinor plans a development based around an FPSO.
“Bay du Nord will add sizeable acreage and a discovered resource to our existing portfolio offshore Newfoundland and Labrador,” said Starlee Sykes, bp senior vice president, Gulf of Mexico & Canada.
Subject to regulatory approvals, the transaction should close later this year.