BP puts North Sea business up for sale after 60 years of production
Energy giant BP has announced it is selling its North Sea operations as part of a portfolio slimdown, in a deal potentially worth up to £2bn.
Stock photo for illustration only, not from the actual event
- BP is putting its North Sea business up for sale, ending 60 years of regional production.
- The unit comprises five production hubs and employs approximately 1,100 people.
- The sale could potentially generate up to £2bn following previous talks with Ithaca Energy.
- The North Sea has become a heated political debate amid global oil price pressures from the Iran war.
Energy giant BP has officially announced that it is putting its North Sea business up for sale, a move that will mark the end of 60 years of oil and gas production in the region. The decision follows a comprehensive operational review as the group actively seeks to streamline its overall structure and operations.
BP's North Sea business currently operates five production hubs—two located in the central North Sea and three situated west of Shetland—and provides jobs for roughly 1,100 people. In terms of output, the business delivered 117,000 barrels of oil equivalent per day throughout 2025, representing a minor fraction of the oil major's total daily global production of 2.3 million barrels.
Announcing the divestment decision, the company explained that shifting its focus and directing capital toward highest-value opportunities makes the North Sea assets better suited under another owner's portfolio.
"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."
BP
Stock photo for illustration only, not from the actual event
The potential transaction could fetch around £2bn for BP. Just last month, the Financial Times reported that the company had engaged in discussions with Ithaca Energy to offload these assets for a similar price tag, although those talks ultimately fell through. Despite this divestment, BP continues to employ approximately 13,960 individuals in the UK and will keep its global headquarters anchored in the country.
BP's exit from the North Sea highlights the broader strategic pivot major energy corporations are taking amid the global energy transition. It also underscores ongoing tensions surrounding the UK's windfall tax, which industry critics argue has eroded the region's investment appeal, all while geopolitical tensions like the Iran war fuel renewed political debates over domestic energy security and drilling licenses.
The North Sea has increasingly re-emerged as a major flashpoint in British politics. While Labour's 2024 general election manifesto pledged not to issue new drilling licenses while honoring existing ones, soaring global oil prices from the Iran war have amplified calls from the Conservatives, Reform UK, and Donald Trump for expanded drilling, while exposing divisions within the Labour party itself.
Source: BBC Business
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