Key facts
- BP has launched a formal process to sell its North Sea oil and gas business.
- The move marks an exit from six decades of production in the region.
- CEO Meg O'Neill cited a focus on higher-value opportunities and portfolio simplification.
- BP's North Sea production averaged approximately 117,000 barrels of oil equivalent per day in 2025.
- The U.K. government is considering new oil and gas projects in the North Sea.
BP has initiated the sale of its North Sea oil and gas business, signaling a significant shift after more than six decades of operations in the region. The decision, announced on Friday, is part of CEO Meg O'Neill's strategy to simplify the company's operations and focus capital on higher-value opportunities globally. O'Neill stated that while the North Sea is integral to the UK's energy system, BP believes its business would be better positioned under different ownership.
The company's involvement in the North Sea dates back to 1964, with notable discoveries like the West Sole gasfield and the Forties field. However, the North Sea is a mature basin, and international energy majors have been reducing their exposure, with independent operators consolidating assets. Increased taxes on profits have also influenced investment decisions.
BP's North Sea production averaged approximately 117,000 barrels of oil equivalent per day in 2025. The business being sold includes five production hubs. The company aims to achieve $20 billion in asset sales by the end of 2027 to reduce net debt. BP will retain its UK aviation fuel distribution, retail sites, trading desk, and London headquarters.
UK Energy Secretary Miatta Fahnbulleh stated she is in close contact with BP to ensure workers and the local community are protected during the sale process. Prime Minister Andy Burnham has indicated a pragmatic approach to new oil and gas drilling, differing from the Labour Party's manifesto which did not plan to issue new licenses. The government is currently reviewing two major North Sea oil and gas projects.