BP has put its North Sea oil and gasoline enterprise up on the market, the corporate introduced on Friday, in a transfer that might finish 60 years of manufacturing within the area by the group.
The enterprise has 5 manufacturing hubs, two within the central North Sea and three west of Shetland, and employs about 1,100 folks. It produced 117,000 barrels of oil equal per day in 2025, in opposition to BP’s whole every day manufacturing of two.3 million barrels.
The choice follows a assessment of BP’s operations because it seeks to slim down the group. A sale might usher in £2bn to BP. The Monetary Occasions reported final month that the corporate had been in talks with Ithaca Vitality to promote the belongings for round that quantity, though the talks fell by means of.
Chief government Meg O’Neill, who took the helm in April, mentioned earlier this yr there was “untapped potential” within the North Sea. Saying Friday’s choice, she mentioned: “As we focus our portfolio and direct capital to our highest-value alternatives, we imagine our North Sea enterprise will likely be higher positioned as a part of one other firm.
“It has world-class folks, resilient belongings and a proud heritage, and it’s exactly these qualities that may entice an proprietor able to again its subsequent chapter. We’re looking for an consequence that acknowledges that worth.”
“The UK has been our residence for greater than 100 years and can proceed to play an essential position in our future,” O’Neill mentioned. “We’re happy with the roles we create, the contribution we make to the UK financial system, and the work we do to maintain power flowing day-after-day.”
BP employs round 13,960 folks within the UK and mentioned its world headquarters will stay within the nation. The corporate mentioned it remained dedicated to working the enterprise safely and reliably all through the sale course of.
The announcement comes amid political debate over the way forward for North Sea drilling. In its 2024 common election manifesto, Labour mentioned it will not concern new licences for drilling however would honour current ones. Earlier this week, Prime Minister Andy Burnham mentioned he had advised US President Donald Trump he would take a “pragmatic strategy” to North Sea oil and gasoline. “There’s a useful resource there. When individuals are struggling – you may’t ignore that,” Burnham mentioned.
Labour’s deputy chief Lucy Powell has beforehand advised the BBC that Burnham would persist with the social gathering’s manifesto commitments, however that there could be a “change of emphasis” on North Sea oil and gasoline.
Oil and gasoline firms have additionally criticised the Vitality Income Levy, the windfall tax on North Sea producers, which they argue means the area has misplaced a few of its attraction lately.
The Scottish authorities’s power minister, Stephen Gethins, mentioned the choice would trigger uncertainty for employees. “Scotland’s future prosperity – and our contribution to power safety – are reliant on North Sea power manufacturing and, crucially, the abilities and expertise of that workforce,” he mentioned.
Gethins added that reserved insurance policies, such because the Vitality Income Levy, had been driving an accelerated decline of North Sea oil and gasoline earlier than renewables had been totally prepared to satisfy power wants.
The Scottish Conservatives’ power spokesman, Andrew Bowie MP, known as on the Labour authorities at Westminster to approve the Jackdaw and Rosebank offshore websites, cancel plans to ban new licences within the North Sea and scrap the Vitality Income Levy.
Reform MSP Duncan Massey mentioned 1,100 employees confronted uncertainty with the sale, including that politicians shouldn’t put ideology forward of jobs and financial actuality.
The Scottish Greens mentioned 80 per cent of the oil from the North Sea was shipped abroad and that it was subsequently “doing little or no to enhance our power safety”.
Jamie Younger
Jamie Younger is Senior Reporter at Enterprise Issues, overlaying SME finance, employment regulation and Westminster coverage since 2016. He has reported on each Funds and Autumn Assertion since 2018, helped make sense of the ‘covid period’ and the bounce-back mortgage scheme from launch by means of the fraud investigations, and broke the journal’s protection of the 2024 late-payment reforms. He joined Enterprise Issues straight from finishing his BA in Administration from Exeter College and is NCTJ-qualified. Attain him at jyoung@cbmeg.co.uk
