BP is putting its North Sea oil business up for sale, ending six decades of regional production. The UK's new prime minister is already signaling a greater openness to drilling in the basin.
BP confirmed the decision Friday after a review of its global operations. The unit runs five production hubs and employs about 1,100 workers, and its sale marks one of the most symbolic retreats yet from the aging North Sea.
A Political Backdrop
The sale lands just as political pressure builds on the government to loosen drilling restrictions. Prime Minister Andy Burnham took over after Keir Starmer's resignation in June. He told US President Donald Trump this week that he would take a “pragmatic approach” to North Sea oil and gas.
“There is a resource there. When people are struggling – you can't ignore that.”
— Andy Burnham, BBC News
The comments follow months of debate. The Iran war pushed oil prices past 0 a barrel earlier this year. That surge revived calls for expanded drilling from Conservatives, Reform UK, and Trump himself.
Some Labour MPs want a looser approach. Others, including former energy secretary Ed Miliband, still defend the party's pledge against new exploration licenses. The result is a governing party visibly split over how far to lean back into fossil fuels.
A Sale, Not an Exit
BP CEO Meg O'Neill framed the sale as part of a shift toward BP's “highest-value opportunities.” BP's global headquarters will stay in the UK, where the company employs about 13,960 people. Management has spent the past year trimming lower-return assets and steering capital toward projects with stronger cash flow.
The sale could fetch BP up to £2 billion, according to earlier reporting on failed talks with Ithaca Energy. Analysts expect a fresh round of bidders now that the unit is formally on the market, though the maturing fields and rising decommissioning costs may weigh on the final price.
Energy Secretary Miatta Fahnbulleh said she was staying in close contact with BP. Her priority is protecting workers and the local community during the sale.
For investors, the move underscores a broader trend: the majors are reshaping their portfolios around returns rather than legacy production, even as governments reconsider energy security. Whether Burnham's shift in tone leads to new licenses before a buyer arrives remains uncertain.
Source: BeInCrypto
