BP puts North Sea business up for sale
The decision follows a review of BP's operations and is set to end 60 years of production in the region by the oil giant.
BP has announced its intention to divest its North Sea operations, a move that would conclude the oil giant's six-decade presence in the region. This decision stems from a strategic review aimed at streamlining BP's global portfolio. The North Sea business encompasses five production hubs—two in the central North Sea and three west of Shetland—and employs approximately 1,100 individuals.
Earlier this week, Prime Minister Andy Burnham indicated that he conveyed to US President Donald Trump his commitment to a "pragmatic approach" regarding North Sea oil and gas. President Trump, along with certain trade unions, industry figures, and some Labour MPs, advocate for increased drilling in the North Sea.
Meg O'Neill, BP's chief executive, stated, "The UK has been our home for more than 100 years and will continue to play an important role in our future." She added, "We're proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day." The company affirmed its dedication to operating the business safely and reliably throughout the sale process.
In 2025, BP's North Sea business produced 117,000 barrels of oil equivalent per day, representing a small fraction of the company's total daily production of 2.3 million barrels. O'Neill, who assumed leadership of BP in April, had previously identified "untapped potential" in the North Sea earlier this year.
However, in announcing Friday's decision, O'Neill explained, "As we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company. It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter. We are seeking an outcome that recognises that value."
The sale could potentially generate £2 billion for BP. Last month, the FT reported that BP was in discussions with Ithaca Energy to sell its North Sea assets for a similar amount, though those talks did not materialize. BP currently employs around 13,960 people in the UK, and its global headquarters will remain in the country.
Energy Secretary Miatta Fahnbulleh confirmed she is in close contact with BP, emphasizing that her priority is to ensure "the workers and local community are protected during this sale process."
The North Sea has become an increasingly prominent subject in political discourse. Labour's 2024 general election manifesto pledged not to issue new drilling licenses but to honor existing ones. However, in recent months, as the Iran war has driven up global oil prices, calls for increased North Sea drilling have intensified from the Conservatives, Reform UK, and President Trump, creating division within the Labour party itself.
Some Labour MPs have urged the government to adopt a more liberal stance, cautioning that the transition away from oil and gas must safeguard jobs and manage energy costs. Conversely, others have supported the government's current approach, arguing that expanding renewable energy is crucial for enhancing energy security and mitigating climate change.
During Sir Keir Starmer's government, Ed Miliband, then Energy Secretary and now Foreign Secretary in Burnham's government, was a strong advocate for the manifesto position. Burnham himself appears to have left open the possibility of future drilling, telling President Trump this week, "There is a resource there. When people are struggling - you can't ignore that." Labour's deputy leader, Lucy Powell, previously informed the BBC that while Burnham would adhere to the party's manifesto commitments, there would be a "change of emphasis" on North Sea oil and gas.
Oil and gas companies have also criticized the UK's windfall tax, the Energy Profits Levy, contending that it has diminished the North Sea's attractiveness in recent years.
Stephen Gethins, the Scottish government's energy minister, expressed concern that BP's decision would create uncertainty for workers. He stated, "Scotland's future prosperity – and our contribution to energy security – are reliant on North Sea energy production and, crucially, the skills and experience of that workforce." Gethins added that reserved policies, such as the Energy Profits Levy, were accelerating the decline of North Sea oil and gas before renewables were fully prepared to meet energy demands.
Andrew Bowie MP, the Scottish Conservatives' energy spokesman, urged the Labour government at Westminster to approve the Jackdaw and Rosebank offshore sites and to cancel plans to ban new North Sea licenses. He also called for the repeal of the Energy Profits Levy. Reform MSP Duncan Massey highlighted the uncertainty faced by 1,100 workers due to the BP sale, arguing that politicians should not prioritize ideology over jobs and economic realities. The Scottish Greens asserted that 80% of North Sea oil is exported, thus "doing very little to improve our energy security."