BP puts North Sea business up for sale ending 60 years of production

BP is exiting the North Sea as it puts the business up for sale, ending 60 years of production in the basin.

The oil major said it had launched a process to market the North Sea business for a potential sale, as it looks to streamline its portfolio.

Chief executive Meg O’Neill, said: ‘The North Sea remains integral to the UK’s energy system. However, as we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company.’

Earlier this year, BP held talks with Ithaca Energy over a near £2billion deal for the North Sea business, which employs around 1,100 people, but no agreement was reached.

BP operates five key production hubs in the North Sea region, including the Clair oilfield, the largest on the UK continental shelf.

This morning it said its plans to exit the North Sea forms part of its ongoing efforts to slim down the group by selling off parts of the business. 

O’Neill, who took charge in April, is leading a reorganisation of BP’s business and a pivot back towards fossil fuels after a disastrous foray into renewable energy projects. 

She had previously said the region had ‘untapped potential’ but operations have become increasingly challenging thanks to windfall taxes and the ban on drilling. 

BP’s planned withdrawal from the North Sea comes after the Prime Minister promised a ‘pragmatic’ approach to drilling in the region following a call with President Donald Trump.

Andy Burnham said: ‘There is a resource there. When people are struggling, we can’t ignore that.’

He has been urged to ‘get Britain drilling’ and approve licences for the Rosebank oil field and Jackdaw gas field, which could be decided as soon as next month. 

BP said its headquarters would remain in the UK. ‘The UK has been our home for more than 100 years and will continue to play an important role in our future,’ said O’Neill. 

She added: ‘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.’ 

On Thursday, it emerged that the oil giant was preparing to slash 700 jobs in its upstream division – the discovery and extraction of crude oil – but not front-line roles such as technicians. 

The aim is to streamline BP and boost returns amid signs of ‘potential oversupply and lower oil and gas prices’.

This is a developing story