Equinor To Take Full Ownership In Empire Wind Projects Through Swap Transaction With Bp In U.S.

(RTTNews) - Equinor (EQNR) said it has entered into a swap transaction with bp, under which Equinor will take full ownership of the Empire Wind lease and projects and bp will take full ownership of the Beacon Wind lease and projects in U.S.

As per the deal, bp will take ownership of Equinor's 50% stake in the Beacon Wind US offshore wind projects, located in federal waters between Cape Cod, Massachusetts, and Long Island, New York. Beacon Wind 1 and 2 have the combined potential to deliver renewable energy to over 2 million consumers in the northeastern US.

Meanwhile, Equinor will take ownership of bp's 50% stake in the Empire Wind US offshore wind projects, located 15-30 miles southeast of Long Island.

In addition, bp agrees to take ownership of Equinor's 50% interest in the Astoria Gateway for Renewable Energy (AGRE) site and Equinor agrees to take ownership of bp's 50% interest in the South Brooklyn Marine Terminal (SBMT).

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.

Bp said it expects the proposed transaction will be on a cash neutral basis subject to customary working capital adjustments. Following assessment of fair value of bp's assets, bp expects to recognize a pre-tax impairment charge of around $0.6 billion relating to bp's US offshore wind assets in the fourth quarter 2023. The transaction is currently anticipated to close around mid-2024.

Equinor expects that the deal will lead to a combined reported loss of about $200 million for the company.