A top BP executive believes the US$9.4 billion Bay du Nord oil project offshore Newfoundland & Labrador, Canada is a “fantastic asset” in a province that could evolve into another US Gulf of Mexico.

In June, the supermajor acquired a 35% stake held by Cenovus in the Equinor-operated deep-water frontier development, building on its interests in two discoveries set to be tied back to a floating production, storage and offloading vessel at Bay du Nord.

BP chief financial officer Murray Auchincloss told analysts late last week: “We are very excited about Bay du Nord, it’s a fantastic discovery, a lovely reservoir.

“We are looking forward to opening that up. I think maybe we’ll describe Bay du Nord as another hub in an extended Gulf of Mexico over time.”

Auchincloss added: “We are happy to take the 35% interest in that [asset] and to work with the operator Equinor.”

However, with the acquisition yet to conclude, and with completion scheduled for this quarter, he was unable to provide further details.

“We’ll talk to you more about it once we close because then we can actually say stuff,” he said. “Right now, we are on the outside.”

The planned 200,000 barrels per day development is due on stream later this decade and will tap close to 1 billion barrels of oil held in multiple discoveries in a core area of the Flemish Pass basin and in some satellite fields, such as Cambriol and Cappahayden.

An exploration well called Sitka is drilling ahead which could add further resources to the project.

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