Equinor and BP split joint venture to participate in NY tenders (US)

The Norwegian energy group Equinor have entered into a swap transaction with the British multinational oil and gas company BP, to dissolve their US offshore wind joint venture and split assets. Under the terms of the agreement, Equinor will take full ownership of the Empire Offshore Wind Holdings lease and projects located south-east of Long Island (New York, United States), and acquire bp's 50% share of the South Brooklyn Marine Terminal (SBMT) lease. Meanwhile, BP will take full ownership of the Beacon Wind Holdings lease and Beacon Wind 1 and 2 projects, located in federal waters between Cape Cod, Massachusetts, and Long Island, New York. BP will also take full ownership of the Astoria Gateway for Renewable Energy (AGRE) site. The transaction is still subject to regulatory approval, but it is expected to be cash neutral, except for standard settlements of cash and working capital items. 

Previously, bp and Equinor each held a 50% stake in the Beacon and Empire offshore wind projects. Under the new agreement, the companies will work independently to develop their wholly owned projects. They have also agreed with the New York State Energy Research and Development Authority (NYSERDA) to terminate the Offshore Wind Renewable Energy Certificate (OREC) Purchase and Sale Agreement for the Beacon Wind 1 project. NYSERDA had rejected their requests to increase contract prices.