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Equinor Takes Full Control of $10 Billion Canadian Offshore Project as BP Exits; Nexans Secures Low-Carbon Aluminium Supply Deal

By MGN EditorialJuly 6, 2026 at 01:45 PM

Equinor moves to sole ownership of a major Newfoundland offshore oil development following BP's exit, while Nexans locks in a five-year low-carbon aluminium supply agreement with Hydro in a signal of the offshore sector's continued decarbonisation push.

## Equinor Consolidates Ownership of $10 Billion Canadian Offshore Project Norwegian state-owned energy giant Equinor is set to become the sole owner of a major offshore oil development off the coast of Newfoundland and Labrador, Canada, after acquiring BP's stake in the project, according to Offshore Energy. The transaction sees UK-headquartered BP exit the estimated $10 billion Canadian development, continuing a broader trend of international oil majors rationalising their upstream portfolios in favour of higher-return or strategically prioritised assets. For Equinor, the acquisition consolidates operational control and signals a deepening commitment to Canadian offshore production, a region that has historically attracted significant investment from Nordic operators. The Newfoundland and Labrador offshore basin is one of Canada's most significant deepwater producing regions, home to major fields including Hibernia, Terra Nova, and Hebron. Equinor's decision to absorb BP's interest underscores confidence in the long-term commercial viability of the project, even as the broader energy transition reshapes investment priorities across the sector. BP's exit is consistent with the company's ongoing portfolio restructuring, which has seen it divest a range of upstream assets globally as it seeks to rebalance its capital allocation between hydrocarbons and lower-carbon energy investments. --- ## Nexans Signs Five-Year Low-Carbon Aluminium Deal with Hydro In a separate development with implications for the offshore energy supply chain, French cable manufacturer Nexans has signed a long-term agreement (LTA) with aluminium producer Hydro for the supply of approximately 85,000 tonnes of low-carbon aluminium over five years, Offshore Energy reports. The deal reflects growing momentum among offshore energy suppliers to secure sustainable raw material inputs as part of broader Scope 3 emissions reduction strategies. Aluminium is a critical material in the manufacture of subsea and offshore power cables, and sourcing low-carbon variants is increasingly a prerequisite for projects seeking to meet tightening environmental standards. For Nexans, the agreement provides supply chain certainty over a multi-year horizon — a significant commercial consideration given ongoing volatility in global commodity markets. Hydro, a Norwegian aluminium and renewable energy company, has positioned low-carbon aluminium production as a core growth area, supplying material with a substantially reduced carbon footprint compared to conventionally smelted alternatives. The partnership aligns with the direction of travel across the offshore wind and subsea infrastructure sectors, where developers and contractors face increasing pressure from financiers and regulators to demonstrate credible decarbonisation pathways across their entire value chains. --- *Sources: Offshore Energy*
#Equinor#BP#Canadian offshore#Newfoundland#Nexans#Hydro#low-carbon aluminium#offshore oil#subsea cables#upstream divestment#supply chain decarbonisation

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