BP launches process to sell North Sea business

BP said Friday it has launched a process to market its North Sea business for a potential sale, as the UK debates the future of oil and gas drilling in the region. Chief executive Meg O'Neill said the North Sea remained “integral” to the UK's energy system, but BP believed the business would be better positioned as part of another company while the group focused its portfolio and capital on higher-value opportunities. BP said its North Sea portfolio includes five production hubs and about 1,100 employees. The company said it remained committed to the UK and that its global headquarters would stay there. The announcement comes amid political pressure over North Sea oil and gas production. US President Donald Trump has repeatedly called on Britain to increase production in the area and claimed that Prime Minister Andy Burnham said in a recent call that he would “open up North Sea oil”. Burnham told reporters on Thursday that he had indicated to Trump he would take “a pragmatic approach” to the North Sea. “There is a resource there. When people are struggling, we can't ignore that,” he said. Labour took power in July 2024 promising not to issue any new oil and gas drilling licences as it sought to move Britain away from fossil fuels and towards renewable energy. Burnham, who replaced Keir Starmer as Labour leader and prime minister earlier this month, has said he will abide by the party's 2024 election manifesto commitments. Energy companies are waiting to see whether drilling at the Jackdaw and Rosebank offshore fields will be allowed amid court battles and bureaucratic delays. BP did not name any potential buyer. The Financial Times reported in June that BP had held unsuccessful discussions over a possible sale to smaller British peer Ithaca Energy for £2 billion, or $2.7 billion. Shell last year merged its North Sea assets with those of Norway's Equinor.