BP announced on Friday that it has initiated a formal marketing process to divest its North Sea oil and gas business. The decision represents a significant shift for the energy company, which has operated in the basin since 1964, when it received its first UK North Sea exploration licence. The company made major discoveries in the region, including the West Sole gasfield in 1965 and the Forties field in 1970, which became its largest find in the area.
Chief Executive Meg O’Neill, who took the position on 1 April, stated that the North Sea remains important to the UK’s energy system but indicated the business would be better positioned under different ownership as BP redirects resources toward higher-value opportunities. The company aims to streamline its portfolio and reduce debt levels. BP said it would maintain its UK aviation fuel distribution business, retail operations, UK-based trading desk, and London headquarters.
The divestiture announcement comes amid broader energy policy discussions in the UK. Energy Secretary Miatta Fahnbulleh stated the government would take a pragmatic approach to the North Sea, recognising that oil and gas will remain part of the UK’s energy mix for years to come, and emphasised priority protection for workers and local communities affected by the sale process. Market analysts characterised the planned exit as a significant development, with some viewing it as an indication of BP’s assessment that policy changes will take time to implement.
According to the North Sea Transition Authority, approximately 2.9 billion barrels of oil equivalent in proven reserves remained at the end of 2024, alongside 6.2 billion BOE in contingent resources and 4.6 billion BOE in prospective resources. Since commercial drilling began in the region during the 1960s, a cumulative 47.7 billion barrels of oil equivalent have been extracted from the UK continental shelf as of the end of 2024.
BP has been reducing its UK exposure more broadly this year. In May, the company announced plans to sell stakes in two large carbon capture and storage projects in north-east England.
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