Key facts
- BP is considering exiting its UK North Sea operations.
- The potential divestiture is linked to unfavorable taxation policies in the UK.
- CEO Meg O’Neill is prioritizing portfolio simplification and capital discipline.
- BP recently sold its stake in the Bay du Nord offshore oil development.
- Other major oil companies have already divested or combined their North Sea assets.
BP is reportedly evaluating an exit from its UK North Sea operations as part of a broader strategy under new CEO Meg O’Neill to simplify its portfolio and enhance capital discipline. O’Neill, who recently marked her first 100 days as CEO, emphasized a focus on making fewer, better investment choices and reducing costs to increase shareholder value.
This potential move aligns with BP's ongoing efforts to streamline its upstream business. The company recently sold its non-operated interest in the Bay du Nord offshore oil development to Equinor. The UK North Sea assets are reportedly being considered for divestiture due to unfavorable taxation policies in Britain.
BP is the last of the major oil companies, or supermajors, to have not yet sold or combined its UK North Sea business. Competitors have already taken steps in this direction: Shell and Equinor merged their oil and gas assets into a standalone company called Adura, while TotalEnergies combined its assets with NEO NEXT to form NEO NEXT+, in which it retains a 47.5% stake.