BP Puts North Sea Oil and Gas Business Up for Sale After Six Decades

BP has announced plans to sell its North Sea oil and gas business, a move that would bring an end to more than 60 years of the energy company’s operations in the region.

The decision follows a strategic review aimed at streamlining the company’s portfolio and focusing investment on higher-value opportunities.

BP’s North Sea division operates five production hubs – two in the central North Sea and three west of Shetland – and employs about 1,100 people. The company said it would continue operating the assets safely throughout the sales process.

BP Chief Executive Meg O’Neill stressed that the United Kingdom remains central to the company’s future despite the planned sale.

“The UK has been our home for more than 100 years and will continue to play an important role in our future,” she said.

“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 North Sea business produced around 117,000 barrels of oil equivalent per day in 2025, representing a relatively small share of BP’s total global production of approximately 2.3 million barrels per day.

Earlier this year, O’Neill described the region as having “untapped potential.” However, announcing the sale on Friday, she said the company believed the business would have stronger prospects under new ownership.

“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,” she said.

“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.”

Industry analysts estimate the sale could generate as much as £2 billion for BP. Reports last month indicated the company had held discussions with Ithaca Energy over a potential deal valued at around that figure, although negotiations were not completed.

BP employs nearly 14,000 people across the UK, and the company confirmed that its global headquarters will remain in the country.

The announcement comes amid renewed political debate over the future of North Sea oil and gas production.

Earlier this week, Prime Minister Andy Burnham said he had told U.S. President Donald Trump that his government would adopt a “pragmatic approach” to North Sea energy policy.

Trump, several trade unions, industry representatives and some Labour MPs have all argued in favour of expanding offshore drilling.

Energy Secretary Miatta Fahnbulleh said she was maintaining close contact with BP and that her priority was ensuring “the workers and local community are protected during this sale process.”

Labour’s 2024 general election manifesto pledged not to issue new oil and gas exploration licences while allowing existing licences to continue.

However, rising global oil prices following the conflict involving Iran have intensified calls from the Conservatives, Reform UK and some Labour MPs for additional North Sea developments. Others within the Labour Party continue to support the government’s existing policy, arguing that expanding renewable energy is essential for long-term energy security and tackling climate change.

As energy secretary in Sir Keir Starmer’s administration, Ed Miliband strongly backed Labour’s commitment not to issue new licences. He now serves as foreign secretary in Burnham’s government.

Burnham has suggested there may be room for flexibility, saying after discussions with President Trump: “There is a resource there. When people are struggling – you can’t ignore that.”

Labour deputy leader Lucy Powell has previously said Burnham remained committed to the party’s manifesto while signalling there would be a “change of emphasis” regarding North Sea oil and gas.

The industry has also continued to criticise the UK’s Energy Profits Levy, commonly known as the windfall tax, arguing that it has made investment in the North Sea less attractive.

Scottish Energy Minister Stephen Gethins warned that BP’s decision would create uncertainty for employees.

“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,” he said.

He added that reserved UK Government policies, including the Energy Profits Levy, were accelerating the decline of North Sea production before renewable energy capacity was sufficient to replace it.

Scottish Conservative energy spokesman Andrew Bowie called on the UK Government to approve the Jackdaw and Rosebank offshore projects, abandon plans to prohibit new exploration licences and scrap the Energy Profits Levy.

Reform UK MSP Duncan Massey also expressed concern over the future of the workforce, saying the sale leaves 1,100 employees facing uncertainty and urging policymakers not to place ideology above jobs and economic realities.

The Scottish Greens, however, argued that around 80% of North Sea oil is exported, saying the industry is “doing very little to improve our energy security.”