BP is putting its North Sea oil business up for sale, a move that ends six decades of production in the region. The company confirmed the decision Friday after a global review of its operations. The unit runs five production hubs and employs about 1,100 workers.
Why BP is selling
CEO Meg O'Neill framed the sale as part of a shift toward BP's 'highest-value opportunities.' The company's global headquarters will stay in the UK, where it employs roughly 13,960 people. Earlier reporting on failed talks with Ithaca Energy suggested the sale could fetch up to £2 billion.
The decision comes as oil prices have surged past $110 a barrel this year following the Iran war. That price spike has complicated the politics of North Sea drilling, with some Labour MPs pushing for a looser approach to new licenses. Former energy secretary Ed Miliband, however, continues to defend the party's pledge against issuing new ones.
Political backdrop
Prime Minister Andy Burnham, who took over after Keir Starmer's resignation in June, has signaled a pragmatic line. Burnham told US President Donald Trump he would take a 'pragmatic approach' to North Sea oil and gas, a stance that leaves room for the sale to proceed without a political fight over existing operations.
Energy Secretary Miatta Fahnbulleh said she is staying in close contact with BP. Her priority, she said, is protecting workers and the local community during the sale process.
What happens to the workers
The 1,100 employees on the North Sea assets face an uncertain future. BP has not said whether a buyer would retain them, but Fahnbulleh's focus on worker protection suggests the government is watching closely. The sale is expected to attract interest from private equity firms and smaller operators looking to squeeze more value from mature fields.
For BP, the exit marks a strategic pivot. The company is betting that its future lies elsewhere — in renewables, hydrogen, and higher-margin oil projects outside the aging North Sea basin. Whether a buyer emerges at the reported £2 billion price tag remains an open question.
