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

BP has said it is putting its UK North Sea business up for sale after 60 years of production.

The energy giant said the decision to market the business for a potential sale forms part of its strategy to slim down the group by selling off parts of the business.

The announcement comes after Prime Minister Andy Burnham left the door open for future North Sea drilling as he confirmed he told Donald Trump “we can’t ignore” the resources there.

He said he told the US president that he would “take a pragmatic approach when it comes to the North Sea”, adding: “There is a resource there. When people are struggling, we can’t ignore that.”

Labour’s 2024 manifesto said the party would not issue new oil and gas licences in the North Sea but that it would honour existing ones.

BP’s North Sea business has five production hubs – two in the central North Sea, and three west of Shetland – and produced 117,000 barrels of oil equivalent per day in 2025.

Some 1,100 staff work for the North Sea business, part of BP’s approximately 13,960-strong UK workforce.

BP’s chief executive Meg O’Neill said she believed the North Sea business would be “better positioned as part of another company”.

“The North Sea remains integral to the UK’s energy system,” she said.

“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.

“It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter.

“We are seeking an outcome that recognises that value.”

Chris Beauchamp, chief market analyst for IG, described the decision as a “watershed moment”.

“It says a lot when BP isn’t prepared to stick around to see if the new Government can re-energise the UK’s energy policy,” he said.

“Clearly BP thinks it will take too long at a time when the need to exploit new energy fields is pressing, and waiting around for Whitehall to move is not a prudent use of resources.”

Conservative shadow energy minister Andrew Bowie said: “BP has been drilling in British waters for six decades, but because of Labour’s disastrous net zero dogma it faces extinction.

“Andy Burnham should break with the past, do what the Conservatives have called for and immediately approve the Jackdaw and Rosebank sites and cancel their plans to ban new licences in the North Sea.”

The Jackdaw gasfield is east of Aberdeen and Rosebank’s oilfield is west of Shetland, and both projects are subject to consultations that are due to run until August 10 and August 17 respectively.

Meanwhile, BP is planning to cut around 700 jobs globally from its production and operations business, which is set to reduce “non-frontline” roles by about 8%.

A spokeswoman for BP said: “We are building a simpler, stronger, more valuable BP.

“As part of this process, we are proposing changes that would result in a reduction in roles, intended to reduce complexity, improve accountability and support long-term performance in a changing market environment.”