BP to Sell UK North Sea Oil and Gas Assets

BP has launched a formal process to sell its UK North Sea oil and gas business, ending more than six decades of production in the region. Chief Executive Meg O'Neill stated that while the North Sea remains integral to the UK energy system, the business will be better positioned as part of another company as BP focuses capital on higher value opportunities. The company will retain its London headquarters, retail sites, UK based trading desk, and aviation fuel distribution business. BP's North Sea operations currently consist of five major production hubs and employed approximately 1,100 workers. In 2025, these assets generated about 117,000 barrels of oil equivalent per day, representing roughly 5 percent of BP's total oil and gas output.

The sale occurs amid a broader portfolio overhaul led by O'Neill, which includes reducing debt and reorganizing the company into upstream and downstream segments. Internal documents indicate BP also plans to reduce its global workforce by 700 roles to reduce complexity. Other major energy firms, including Shell and TotalEnergies, have similarly reduced their North Sea operations in recent years as production in the aging basin declines.

Political reactions to the move vary based on ideological framing. Center left sources highlight the sale within the context of the climate crisis and a declining basin. Conversely, center right sources frame the exit as a result of policy uncertainty and punitive taxation by the UK government. Some critics from the right argue that the sale is a consequence of net zero dogma, while others suggest that both previous and current administrations have failed to create an attractive investment environment. Prime Minister Andy Burnham and Energy Secretary Miatta Fahnbulleh have stated they will take a pragmatic approach to the North Sea, recognizing that oil and gas will remain part of the energy mix for years to come.