OIL giant BP has said it is putting its UK North Sea business up for sale after 60 years of production.
The global energy firm 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 National reported in May that BP was considering the move, with an estimated windfall of £2 billion for all of its assets in the area.
The move comes despite BP more than doubling its annual profit following the outbreak of the Iran war. These profits are calculated from BPs global oil trading operations, not just the North Sea where extraction is more technically difficult and expensive than in other regions, and the firms debt has reached around £27bn.
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 North Sea licences and the softening of rhetoric has been slammed by environmental campaigners, particularly as wildfires have caused chaos in Europe and in Scotland in recent weeks, with experts warning that these extreme incidents are becoming more common and intense because of human activity.
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 1100 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.”
Commenting on the news, the Scottish Government's Energy Secretary Stephen Gethins said: "BP has a long and significant history in the North Sea, making a substantial contribution to the economy over 60 years of production.
"The commercial decision announced today of a sale of its assets will cause uncertainty for workers. The Scottish Government is ready to engage with BP and other partners to understand the impacts of the sale process and to support the workforce.
"Scotland’s future prosperity – and our contribution to energy security – are reliant on North Sea energy production and, crucially, the skills and experience of that workforce, not least in the North East.
"We need to see a parallel track approach to the energy transition, in which North Sea oil and gas production is managed alongside the increasing deployment of renewables. What is happening at the moment is that reserved policies such as the Energy Profits Levy are driving an accelerated decline of North Sea oil and gas before renewables are fully ready to meet our energy needs.
"We are committed to doing everything within our limited powers to ensure the future success of the offshore energy industry, working with local communities, businesses and the UK Government. The UK Government needs to take urgent action to protects jobs, energy security and investment in our energy sector."
