BP has announced plans to sell its North Sea business, marking a significant shift for the company which has operated in the region for over 60 years. While the specific Bloomberg article is unavailable, other news sources confirm that BP is initiating a process to market its North Sea assets for a potential sale, as part of an ongoing portfolio review. This decision is driven by BP's strategy to focus capital on what it identifies as its highest-value opportunities globally. The company believes its North Sea operations, despite having world-class people, resilient assets, and a proud heritage, would be better positioned as part of another company.
The North Sea business, which employs approximately 1,100 workers, produced around 117,000 barrels of oil equivalent per day in 2025, representing about 5% of BP’s total global oil and gas output. Analysts at Rystad Energy estimate the business could be valued at approximately $2.6 billion. The portfolio includes significant stakes in key areas such as Clair and Schiehallion west of Shetland, and the ETAP complex. Potential bidders for these assets may include UK-focused operators like Neo Next+ and Ithaca.
This sale follows a period of tension between North Sea producers and the British government, exacerbated by the introduction and extension of a windfall tax on offshore oil and gas producers since 2022. This policy, along with a ban on new exploration licenses by the current Labour government, has reportedly made investing in the region less competitive. While BP CEO Meg O'Neill emphasized the North Sea's integral role in the UK's energy system and BP's long-standing commitment to the UK, the company's strategic re-prioritization ultimately led to the decision to divest. This move is seen as a pivotal moment for the UK's oil and gas industry and the new Prime Minister, Andy Burnham.
