Equinor, BP to Swap Stakes in New York Wind Projects

By Ben Glickman

Equinor will take over BP's stake in the New York-based Empire Wind projects in exchange for ceding ownership of its Beacon Wind lease and project.

The Norwegian energy company said the deal would be cash neutral, except for standard settlements of cash and working capital items.

Equinor will also take over BP's 50% share of the South Brooklyn Marine Terminal lease.

The company said the agreement would allow both entities to "pursue their respective priorities under their corporate strategies."

The Empire Wind lease, awarded to Equinor in 2017, is being developed in two separate projects. The Beacon Wind lease is also being developed as two projects and was awarded to Equinor in 2019.

BP bought into both projects for $1.1 billion in 2020.

Equinor said the Empire Wind projects had been hit by industry-wide macroeconomic conditions.

The deal is expected to result in a combined reported loss of around $200 million for Equinor, but would have no effect on adjusted earnings.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

January 25, 2024 15:44 ET (20:44 GMT)

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