BP launches sale of North Sea operations as debt reduction drive continues

BP has formally launched the sale of its North Sea oil and gas business, marking a significant step in the company's strategy to streamline operations, reduce debt and focus investment on higher-value assets.

The energy major announced on July 31 that it had begun a formal process to market its North Sea operations, potentially bringing an end to more than six decades of production in the region.

Chief Executive Meg O'Neill, who took office on April 1, said the move reflects the company's broader effort to reshape its portfolio while acknowledging the continued importance of the North Sea to the UK's energy sector.

"The North Sea remains integral to the UK’s energy system. However, 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,” O'Neill said.

BP's North Sea portfolio includes five production hubs—two in the central North Sea and three west of Shetland—and employs around 1,100 people.

The business produced approximately 117,000 barrels of oil equivalent per day in 2025, representing only a small share of BP's total global production of around 2.3 million barrels per day.

The announcement came one day after newly appointed UK Prime Minister Andy Burnham said his government would take a "pragmatic" approach to future oil and gas development in the North Sea, arguing that Britain could not ignore the region's remaining energy resources.

The sale also follows comments by US President Donald Trump, who said Burnham had told him "he's going to open up the North Sea" for further oil drilling.

BP has played a central role in the development of Britain's offshore energy industry since receiving its first UK North Sea exploration licence in 1964. The company discovered the West Sole gas field in 1965 before making its largest North Sea discovery, the Forties oil field, in 1970.

Industry analysts described the planned sale as "a watershed moment" in comments to The Guardian, arguing that the decision reflects BP's assessment of the UK's evolving energy policy.

According to the analysts, the move "says a lot when BP isn’t prepared to stick around to see if the new government can re-energise the UK’s energy policy.”

They added that the company appears to believe the policy shift would take "too long at a time when the need to exploit new energy fields is pressing, and waiting around for Whitehall to move is not a prudent use of resources.”

O'Neill's appointment has been followed by wider changes within the company. Less than two months after becoming chief executive, BP removed Chairman Albert Manifold, citing serious concerns over "important governance standards, oversight and conduct."

The sale of the North Sea business could reportedly generate around £2 billion for BP. The Financial Times reported last month that the company had held talks with Ithaca Energy over a potential sale of the assets for approximately that amount, although negotiations ultimately failed to produce an agreement.

By Nazrin Sadigova