BP has launched a process to sell its North Sea oil and gas business, potentially ending around 60 years of production by the British energy giant in the region as it focuses investment on assets it considers more valuable.
The company said on Friday that it had begun marketing its North Sea portfolio, which includes five production hubs and employs about 1,100 people. BP said the business produced around 117,000 barrels of oil equivalent per day in 2025, representing roughly 5 percent of its global oil and gas output.
BP Chief Executive Meg O’Neill said the UK would remain important to the company, which has operated in the country for more than a century. She said the North Sea business had strong assets, skilled employees and a long history but could be better positioned under a new owner.
BP said it would continue operating the assets safely and reliably while the sale process is under way. O’Neill said the company would seek a transaction that recognised the value of the business, its workforce and its history.
The proposed sale comes as the future of North Sea oil and gas remains a politically sensitive issue in Britain. The basin has faced declining production, higher taxes and uncertainty over future investment.
The UK government introduced a windfall tax on energy producers after energy prices surged, increasing the tax burden on North Sea operators. Industry groups have argued that the tax and changes to licensing policy have made new investment less attractive.
The announcement also follows comments from Prime Minister Andy Burnham indicating that the government could take a more pragmatic approach to North Sea oil and gas production amid concerns about energy security and volatile international markets.
US President Donald Trump has repeatedly called on Britain to increase North Sea oil and gas production. Burnham said the UK needed to take a practical approach to the region’s resources.
BP has been reshaping its wider portfolio after investors demanded stronger financial returns and lower debt. The company has reduced its renewable energy investment and returned greater attention to its traditional oil and gas operations, while selling assets in other parts of the business.
Among its recent transactions is an agreement to sell a 65 percent controlling stake in Castrol, its lubricants division, to infrastructure investment firm Stonepeak. The deal is expected to close by the end of 2026, subject to regulatory approval.
BP’s North Sea plans follow similar moves by other international energy companies. ExxonMobil, Chevron and ConocoPhillips have sold assets in the basin, while Shell and Equinor combined their UK offshore operations in a joint venture.
The North Sea has been a major source of British oil and gas for decades, but production has fallen as many fields have matured. BP’s decision to seek a buyer reflects the growing pressure on major energy companies to concentrate spending on assets capable of delivering stronger long-term returns.
