BP sells North Sea business
Analysis based on 27 articles · First reported Jul 31, 2026 · Last updated Jul 31, 2026
BP's decision to exit the North Sea signals reduced investment in UK oil and gas, potentially impacting energy security and local employment. The move may pressure the UK government to reconsider its energy policy and windfall tax, while BP's focus on core assets could improve its financial performance.
BP announced on Friday that it will market its UK North Sea business for sale, ending over 60 years of production in the region. The business comprises five production hubs, employs about 1,100 people, and produced around 117,000 barrels of oil equivalent per day in 2025, accounting for about 5% of BP's global output. CEO Meg O Neill stated that the business would be 'better positioned as part of another company' as BP focuses on higher-value opportunities. The decision follows years of declining production, higher windfall taxes, and policy uncertainty under the UK government. Prime Minister Andy Burnham has signaled a more pragmatic approach to North Sea oil and gas, but Labour's 2024 manifesto pledged not to issue new licences. Political figures, including SNP leader John Swinney and Conservative shadow minister Andrew Bowie, have called for the scrapping of the Energy Profits Levy and approval of new projects like Jackdaw and Rosebank. Environmental groups like Uplift argue the move reflects the basin's decline. BP's divestment follows similar retreats by other majors, including ExxonMobil, Chevron, ConocoPhillips, Shell, Equinor, and TotalEnergies. BP is also cutting about 700 jobs globally and has agreed to sell a 65% stake in BP — Castrol to Stonepeak.
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