British energy major BP announced on Friday that it has initiated a formal process to sell its North Sea business, a move that could draw to a close more than six decades of oil and gas production under its ownership in the waters off the United Kingdom. The company said the decision aligns with its strategy to concentrate on what it calls “highest-value opportunities.”
The North Sea portfolio, which comprises five production hubs and employs roughly 1,100 people, has been a cornerstone of BP’s operations since the 1960s. In 2025, the business produced around 117,000 barrels of oil equivalent per day, accounting for approximately 5% of BP’s global output.
BP’s chief executive, Meg O’Neill, framed the sale as a natural evolution. “The UK has been our home for more than 100 years and will continue to play an important role in our future,” she said. “We’re proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day.”
O’Neill added that the North Sea remains integral to the UK’s energy system, but that the business would be better positioned under different ownership. “It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter,” she said.
The announcement comes just a day after new UK Prime Minister Andy Burnham signalled a potentially more flexible stance on North Sea oil and gas production, citing concerns over energy security and volatile global markets. Burnham said on Thursday that he intends to take “a pragmatic approach” to developing the region’s resources, a shift that may influence the sale’s outcome. US President Donald Trump has also repeatedly urged Britain to ramp up production in the North Sea.
Why the North Sea is losing its appeal
The ageing basin has steadily lost its lustre in recent years. Production has declined, the UK’s windfall tax has been repeatedly revised, and the previous Labour government declined to issue new exploration licences. Oil and gas companies have criticised the tax regime and policy uncertainty, arguing they discourage investment.
BP’s decision to divest is part of a broader strategic reversal. After scaling back investments in renewable energy, the company is refocusing on its core oil and gas operations, responding to investor pressure for better returns and lower debt. Over the past year, BP has agreed to or completed several divestments, including the sale of a 65% controlling stake in Castrol, its lubricants business, to infrastructure investment firm Stonepeak. That deal is expected to close by the end of 2026, subject to regulatory approval.
BP is not alone in retreating from the North Sea. ExxonMobil, Chevron and ConocoPhillips have all sold assets in the region, while Shell and Equinor have combined their UK offshore operations in a joint venture. TotalEnergies has also trimmed and reorganised parts of its portfolio. The trend reflects a wider industry shift toward more profitable projects elsewhere, often in the Americas or the Middle East.
For the UK, the sale raises questions about the future of domestic energy production and the country’s ability to meet its climate targets while maintaining security of supply. The North Sea still accounts for a significant share of UK oil and gas output, and the transition to a new owner could affect investment, jobs and decommissioning obligations.
BP said it would continue to operate the business safely and reliably throughout the sale process. The company did not disclose a timeline or potential buyers, but analysts expect interest from private equity firms and smaller producers that specialise in mature basins.
The move also comes amid broader European energy market turbulence, with prices still elevated compared to pre-pandemic levels. As European countries seek to balance decarbonisation with energy security, the fate of the North Sea will remain a closely watched issue.
