- BP has launched a process to sell its North Sea oil and gas business after more than six decades.
- The company says it wants to focus investment on its highest-value opportunities.
- The sale comes as the UK debates the future of North Sea production and energy security.
BP is looking to sell its North Sea oil and gas business, marking another major shift for a company that has helped shape the UK's offshore energy industry for more than 60 years.
The BP North Sea sale comes as the company reshapes its portfolio to focus on businesses expected to generate stronger returns. While BP says the North Sea remains important to the UK's energy system, it believes the business could have a stronger future under different ownership.
The portfolio includes five production hubs, employs around 1,100 people, and produced approximately 117,000 barrels of oil equivalent a day in 2025, accounting for about 5 per cent of BP's global oil and gas production.
Why is BP moving on?
The decision is part of a wider overhaul taking place across BP.
Over the past year, the company has been simplifying its business by selling assets and directing more investment towards its core oil and gas operations. It has also reduced its ambitions in renewable energy following pressure from investors to improve returns and strengthen its balance sheet.
One recent example was the agreement to sell a 65 per cent stake in Castrol to infrastructure investment firm Stonepeak, with the transaction expected to complete by the end of 2026, subject to regulatory approval.
The North Sea itself has also become a more difficult place to operate. Production has steadily declined as many oil and gas fields have matured, while higher taxes and changing government policies have created uncertainty for energy companies. Previous restrictions on new exploration licences and the windfall tax have also been criticised by producers, who argue the measures have discouraged fresh investment.
BP chief executive Meg O'Neill reportedly said the company remains committed to the UK but believes the North Sea business would be better placed under an owner prepared to invest in its next phase.
Part of a wider industry shift
BP is far from the only major energy company reassessing its position in the North Sea.
In recent years, ExxonMobil, Chevron and ConocoPhillips have all sold North Sea assets, while Shell and Equinor combined their UK offshore businesses into a joint venture. TotalEnergies has also reduced parts of its regional portfolio as companies increasingly focus on projects offering stronger long-term returns.
The timing is also significant.
The announcement comes shortly after Prime Minister Andy Burnham indicated he could take a more pragmatic approach to North Sea oil and gas production, arguing that domestic energy resources still have a role to play in strengthening the UK's energy security. US President Donald Trump has also repeatedly urged the UK to increase North Sea oil and gas production.
Despite those political signals, BP's decision suggests commercial realities remain the bigger driver. The company said it will continue operating the business safely throughout the sale process while seeking a buyer that recognises the value of its workforce, assets and long history in the region.
For BP, the proposed sale is less about leaving the UK and more about concentrating capital where it believes it can earn the strongest returns. For the North Sea, it is another sign that ownership may be changing, even as the region continues to play an important role in Britain's energy mix.
