British oil company BP says it withdrew from the proposed Bay du Nord offshore oil project off the east coast of Newfoundland to free up some money.
The company published its second-quarter financials on Tuesday, saying the period was marked by deep disruptions in the global energy market.
It nonetheless posted profits of $3.9-billion, more than double its second-quarter profits last year.
Oil companies are posting significant gains as fighting in Iran upends the global fuel supply and sends oil and gasoline prices soaring.
BP’s second-quarter report says its decision to pull out of Bay du Nord last month shows the company is investing with more discipline.
BP announced a deal to sell its interest in Bay du Nord to Equinor, the project’s Norwegian operator, as the London-based energy giant looks to simplify its global portfolio.
“We must keep challenging ourselves, using our balanced investment criteria to make decisions rooted in profitability, cash generation and market realities,” Meg O’Neill, BP’s chief executive officer, said in the company’s second-quarter report.
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“I am very clear on this, we need to compete in the weight class we are in.”
Bay du Nord would be Canada’s first deepwater oil project, located in the Flemish Pass Basin, about 500 kilometres east of St. John’s at a water depth of up to 1,170 metres.
It would also be farther from shore than any offshore oil project in the world.
At the time of the deal, BP held interests across 10 licences associated with the project, with an average working interest of 37.2 per cent.
The sale was subject to customary conditions and approvals.
Equinor is expected to make a final decision early next year on whether to proceed with Bay du Nord.
With files from the Associated Press.
Of course, nothing to do with Carney’s carbon capture and taxes making the oil too expensive to sell.
The greed of Oil Corporations is beyond belief or reason