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BP And Equinor Are Creating A Strategic Partnership In The Field Of Offshore Wind Power In The United States

BP And Equinor Are Creating A Strategic Partnership In The Field Of Offshore Wind Power In The United States

British oil and gas company BP has agreed to buy the rights to lease offshore wind power assets in the United States for $1.1 billion from Norway's Equinor (formerly Statoil), as well as to establish a strategic partnership in this transaction, Equinor said in a press release.

According to the agreement, Equinor will sell BP a 50% stake in its leased assets Empire Wind and Beacon Wind on the East coast of the United States for $1.1 billion. Beacon Wind and Empire Wind are wind generator clusters in the United States. Equninor leased them from the United States in 2019 and 2017, respectively.

Through the transaction, the companies also establish a strategic partnership for further development in the field of wind power in the United States. As part of this partnership, Equinor and BP will look at common opportunities in the United States to Commission both onshore and onshore wind power plants.

Wind farms have a potential total installed capacity of more than 2 GW each. They are currently fully leased from Equinor. It's worth noting that the Norwegian company will remain the operator of projects in these zones during the development, construction, and operation stages.

The deal is expected to close in early 2021, subject to the necessary conditions, including price adjustments and government approval. Wind farms are expected to be equally staffed after a certain period of time.

BP is a British company, one of the six largest oil and gas corporations in the world, founded in 1909. BP's hydrocarbon production totaled 3.655 million barrels of oil equivalent per day in the past six months, which is 3.5% less than in the same period last year. Statoil oil and gas group changed its name to Equinor on May 16, 2018. The company has been developing hydrocarbons on the Norwegian continental shelf for more than 30 years. The largest shareholder is Norway. The company employs more than 21 thousand people.

“We look forward to working with BP who share our strong ambition to grow in renewable energy. Our partnership underlines both companies’ strong commitment to accelerate the energy transition and combining our strengths will enable us to grow a profitable offshore wind business together in the US,” says chief executive officer in Equinor, Eldar Sætre.

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