Key facts
- BP is considering selling its UK upstream portfolio, valued at an estimated $3.4 billion unrisked.
- The potential sale could fetch around £2 billion ($2.7 billion).
- BP aims to reach a $20 billion divestment target by the end of 2027.
- The company is shifting focus to exploration in regions like the US and Brazil, with recent discoveries in Brazil and Angola.
- BP's exploration and appraisal drilling activity has significantly increased since 2025.
BP is reportedly exploring the sale of its UK upstream oil and gas assets, a move that could yield approximately £2 billion ($2.7 billion). This potential divestment aligns with the company's broader strategy to reduce its exposure in the UK and focus on exploration in regions offering greater growth potential, such as the US and Brazil. Talks with Ithaca Energy regarding a sale fell through earlier this month, but BP remains open to divesting its portfolio, either entirely or partially, or through a joint venture structure.
The company's strategic pivot, initiated in early 2025, emphasizes aggressive exploration, which has already led to significant discoveries like the Bumerangue field in Brazil, estimated to hold 8 billion barrels of liquids. Since 2025, BP has discovered approximately 2.7 billion barrels of oil equivalent (boe) in recoverable resources. This renewed focus on exploration is reflected in a near doubling of net exploration and appraisal drilling activity last year compared to the 2023-2024 period. New CEO Meg O’Neill has set a target to achieve a 100% reserve replacement ratio by 2027, up from the current 76%.
BP's potential exit from the North Sea would make it an outlier among major UK producers, as other large companies have either reduced their stakes or formed joint ventures. The UK upstream portfolio is valued by Rystad Energy at $3.4 billion unrisked, and potential acquirers could include entities like NEO NEXT+ and Adura. The sale would also contribute to BP's larger goal of achieving $20 billion in divestments by the end of 2027, supporting its financial targets amidst a reported increase in net debt.