BP plans to sell North Sea business

BP said on Friday that it had launched moves to sell its North Sea business as the British oil and gas company focuses its portfolio on what it called its highest-value opportunities.

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 placed as part of another company.

BP said its North Sea portfolio includes five production hubs and employs about 1,100 people. The company said it remained committed to the UK and that its global headquarters would stay there. BP employed nearly 14,000 staff across the UK last year, according to its latest figures.

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.

Supporters of more North Sea drilling argue it would help reduce energy bills and improve UK energy security. Burnham has said his government will focus on the cost of living and has announced plans to remove VAT from electricity bills this winter.