BP to Sell UK North Sea Oil Business After 60 Years

British oil giant BP announced Friday that it has launched a formal process to market its North Sea business for potential sale, marking the end of six decades of production in the basin. The decision forms part of the London-based oil major’s ongoing portfolio review as new chief executive Meg O’Neill works to simplify the company and reduce debt levels.

BP’s involvement in the North Sea dates back to 1964, when the company received its first UK North Sea exploration licence. The firm discovered the West Sole gasfield in the winter of 1965, followed by its largest discovery in the area, the giant Forties field, in 1970.

“The North Sea remains integral to the UK’s energy system. However, 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,” said O’Neill.

Strategic Portfolio Restructuring Drives Decision

The energy giant emphasized that the sale aligns with its approach of allocating capital in a rigorous fashion to enhance company value by making operations simpler and stronger. O’Neill stressed that Britain would continue to play an important role in BP’s future despite the divestment. The company highlighted its pride in the jobs it creates and the contribution it makes to the UK economy.

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

The chief executive’s comments contrast sharply with her recent assessment of the region, as she described the North Sea basin as one of “untapped potential” as recently as May. The company confirmed that nothing would change for the time being while a buyer was found, vowing full commitment to continuing operations with a focus on safety and dependability.

North Sea Operations and Workforce Impact

BP’s North Sea business comprises 24 fields across five main nodes in the basin, including two in the central North Sea and three west of Shetland. Key assets include the Clair Ridge and Schielhallion fields off the Shetland Islands. The business produced 117,000 barrels of oil equivalent per day in 2025, with current output running at a little under 100,000 barrels of gas and oil daily.

Approximately 1,100 staff work for the North Sea business, which forms part of BP’s roughly 13,960-strong UK workforce. Energy consultant Rystad estimates the North Sea business carries a value of approximately $2.6 billion and suggested that potential buyers could include the TotalEnergies-HitecVision-Repsol joint venture Neo Next+, Delek Group of Israel, or Eni of Italy.

Government Response and Policy Context

The announcement comes after UK Prime Minister Andy Burnham left the door open for future North Sea drilling, confirming he told US President Donald Trump that the government “can’t ignore” the resources there. Burnham said he would take a pragmatic approach when it comes to the North Sea, noting that when people are struggling, the country cannot ignore available resources.

Energy Secretary Miatta Fahnbulleh said she remained in close contact with BP over its plans, emphasizing that the North Sea represents a vital national asset. She affirmed the government would take a pragmatic approach, recognizing that oil and gas will remain part of the energy mix for years to come. The comments carry particular significance given that Labour’s 2024 manifesto stated the party would not issue new North Sea licenses.

Market and Industry Reaction

BP’s share price gained slightly on the news, rising a little more than 1% to $7.36 in mid-afternoon trade on the London Stock Exchange on Friday. Chris Beauchamp, the chief market analyst at investing and trading platform IG, described BP’s North Sea sale as “a watershed moment” for the UK energy sector.

“It says a lot when BP isn’t prepared to stick around to see if the new government can re-energise the UK’s energy policy. Clearly BP thinks it will take too long at a time when the need to exploit new energy fields is pressing, and waiting around for Whitehall to move is not a prudent use of resources,” Beauchamp said.

Environmental and Industry Perspectives

BP’s planned exit from the North Sea comes as climate crisis conditions lead to wildfires and drought across Europe. Angharad Hopkinson, a political campaigner at Greenpeace UK, called BP’s withdrawal from the North Sea “the canary in the coalmine for a toxic, declining basin.”

“If the North Sea really were the saviour of jobs, opportunity and energy security that the fossil fuel lobby claims, its biggest beneficiaries wouldn’t be heading for the exit,” Hopkinson said.

The sale marks a significant shift in BP’s strategic direction under O’Neill’s leadership, as the company seeks to concentrate resources on what it views as higher-value opportunities. The formal marketing process will now determine which operator takes over stewardship of assets that have supplied the UK with energy resources for generations, while the company maintains its commitment to delivering for customers, partners, and investors throughout the transition period.