BP has launched a formal process to sell its UK North Sea oil and gas business, potentially ending more than 60 years as one of the region’s leading operators.
The energy company announced on Friday, 31 July, that it was marketing the business for a possible sale as part of an ongoing review of its global portfolio.
BP said it intends to focus its investment on what it considers its highest-value opportunities, arguing that its North Sea operations could be better placed under a different owner.
Chief executive Meg O’Neill said:
“We believe our North Sea business will be better positioned as part of another company.”
She described the operation as having “world-class people, resilient assets and a proud heritage” capable of attracting an owner prepared to support its future development.
Five production hubs and 1,100 employees
BP operates five major production hubs in the North Sea, including interests in the Clair and Schiehallion fields west of Shetland.
Its UK North Sea operations produced approximately 117,000 barrels of oil equivalent per day during 2025, representing around five per cent of BP’s worldwide oil and gas production. The company has since agreed to sell its interest in the Culzean field, which accounted for approximately 25,000 barrels per day.
Around 1,100 people are employed by BP’s North Sea business, out of approximately 14,000 BP employees across the United Kingdom.
No sale has yet been agreed, and BP has not announced that the 1,100 positions will be lost. Their eventual status is likely to depend upon the identity of any buyer and the terms of a future transaction.
BP said it would continue operating the business safely and reliably while the sale process was underway. (BP announcement)
BP is not leaving the United Kingdom
The proposed sale relates specifically to BP’s upstream North Sea oil and gas business and does not represent a complete withdrawal from the UK.
The company intends to retain its other British operations, including its fuel retail network, aviation-fuel distribution, energy-trading activities and London headquarters.
BP said the UK, which has been its home for more than a century, would continue to play an important role in the company’s future.
Nevertheless, a completed sale would mark the end of an important chapter in British industrial history. BP began exploring in the North Sea during the 1960s and became one of the companies most closely associated with the development of Britain’s offshore oil and gas industry.
Part of a wider BP overhaul
The sale process forms part of a wider restructuring under O’Neill, who became BP’s chief executive earlier this year.
BP is seeking to improve profitability, simplify its corporate structure and reduce debt, with the company targeting approximately $20 billion in asset disposals by the end of 2027.
The company has also reorganised its operations into two principal divisions—upstream and downstream—and is directing more capital towards opportunities in regions including the United States and Brazil.
Other major energy companies have also reduced, combined or sold parts of their North Sea operations in recent years as production from the mature basin has declined and competing projects elsewhere have offered potentially higher returns. (Reuters)
North Sea tax and investment debate
BP’s announcement is likely to intensify political debate about the future of Britain’s offshore energy industry.
Oil and gas companies and business organisations have repeatedly argued that changes to taxation, including the Energy Profits Levy, together with uncertainty over future licensing and environmental policy, have weakened investor confidence.
However, BP did not present government taxation or energy policy as the sole reason for its decision. Its announcement described the sale as a portfolio and capital-allocation decision intended to concentrate investment on the company’s most valuable global opportunities.
The Aberdeen and Grampian Chamber of Commerce nevertheless said the announcement demonstrated that confidence in the UK Continental Shelf had been damaged by taxation and policy uncertainty.
Its chief executive, Russell Borthwick, called for a stable, long-term fiscal and regulatory framework, warning that further investment, employment and expertise could leave the UK without greater certainty. (Aberdeen and Grampian Chamber of Commerce)
Environmental groups and supporters of the transition away from fossil fuels are likely to view the development differently, arguing that declining North Sea production reinforces the need for investment in renewable energy and alternative employment for offshore workers.
Government in contact with BP
Energy Minister Miatta Fahnbulleh said the Government was in close contact with BP over the proposed sale.
The announcement came shortly after Prime Minister Andy Burnham said his government would take a “pragmatic” approach to the development and use of North Sea resources.
The Government will now face pressure to clarify how its approach will protect employment and communities connected to the offshore industry while meeting the UK’s climate and energy commitments.
What happens next?
BP will seek expressions of interest from potential buyers, after which interested companies may be invited to examine the business and submit offers.
There is no guarantee that the process will result in a completed sale, and BP has not announced a timetable or an expected price.
For the moment, the production hubs will continue to operate under BP. If a transaction is eventually agreed, it would remain subject to negotiation and any necessary regulatory approvals.
The announcement therefore does not mean that the fields are closing or that production is immediately ending. Instead, BP is seeking a new owner to take control of its North Sea portfolio and potentially finance the next stage of its operation.
Even so, the possible departure of one of the companies that pioneered North Sea production represents a significant moment for British energy policy—and is certain to fuel the debate over taxation, investment, energy security and the future of skilled offshore employment.