Equinor To Take Full Ownership In Empire Wind Through A Swap Transaction With BP In The U.S.; Equinor Will Also Take Over Bp's 50% Share Of The South Brooklyn Marine Terminal Lease
Portfolio Pulse from Benzinga Newsdesk
Equinor (NYSE:EQNR) has agreed to a swap transaction with bp, gaining full ownership of the Empire Wind lease and projects, and taking over bp's 50% share of the South Brooklyn Marine Terminal lease. In exchange, bp will take full ownership of the Beacon Wind lease and projects. The deal is cash neutral, except for standard settlements. Equinor submitted a bid for Empire Wind 1 in New York's offshore wind solicitation and terminated the OREC agreement for Beacon Wind 1. The transaction will increase Equinor's near-term capital expenditure by approximately $1.2 billion in 2024 and $1.5 billion in 2025, and is expected to result in a reported loss of around $200 million, pending regulatory approval and a positive NY4 solicitation outcome.
January 25, 2024 | 8:05 pm
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Equinor's swap deal with bp for full ownership of Empire Wind and part of the South Brooklyn Marine Terminal lease may lead to increased capital expenditure and a reported loss of $200 million, contingent on a positive NY4 solicitation result.
The transaction is significant for Equinor, as it increases its exposure to the offshore wind market in the US, which aligns with its strategic focus on renewable energy. However, the increased capital expenditure and the anticipated reported loss of $200 million could negatively impact investor sentiment in the short term. The final impact will depend on the NY4 solicitation outcome and regulatory approvals.
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