bp, Equinor revisit US offshore wind projects power sale agreements
Aug. 1, 2023
bp and partner Equinor are renegotiating the terms of power supply agreements linked to their giant wind developments off the US East Coast, according to bp CEO Bernard Looney.
LONDON — bp and partner Equinor are renegotiating the terms of power supply agreements linked to their giant wind developments off the US East Coast, according to bp CEO Bernard Looney.
"We are in the midst of renegotiating our PPA [power purchase agreement] contracts in the East Coast with our partner Equinor," Looney told analysts Aug. 1.
In 2020 bp paid Equinor $1.1 billion for a 50% stake in the venture to develop the Empire and Beacon offshore wind projects with a total capacity of 3,300 MW.
"We will not develop projects that don't meet our returns thresholds" of 6% to 8%, Looney said.
Reuters reported in March that bp was seeking to change the terms of the joint venture with Equinor.
