BP has put its North Sea oil and gas business up for sale, the company announced on Friday, in a move that would end 60 years of production in the region by the group.
The business has five production hubs, two in the central North Sea and three west of Shetland, and employs about 1,100 people. It produced 117,000 barrels of oil equivalent per day in 2025, against BP’s total daily production of 2.3 million barrels.
The decision follows a review of BP’s operations as it seeks to slim down the group. A sale could bring in £2bn to BP. The Financial Times reported last month that the company had been in talks with Ithaca Energy to sell the assets for around that amount, although the talks fell through.
Chief executive Meg O’Neill, who took the helm in April, said earlier this year there was “untapped potential” in the North Sea. Announcing Friday’s decision, she said: “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 recognizes that value.”
“The UK has been our home for more than 100 years and will continue to play an important role in our future,” O’Neill said. “We’re proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day.”
BP employs around 13,960 people in the UK and said its global headquarters will remain in the country. The company said it remained committed to operating the business safely and reliably throughout the sale process.
The announcement comes amid political debate over the future of North Sea drilling. In its 2024 general election manifesto, Labour said it would not issue new licences for drilling but would honour existing ones. Earlier this week, Prime Minister Andy Burnham said he had told US President Donald Trump 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,” Burnham said.
Labour’s deputy leader Lucy Powell has previously told the BBC that Burnham would stick to the party’s manifesto commitments, but that there would be a “change of emphasis” on North Sea oil and gas.
Oil and gas companies have also criticised the Energy Profits Levy, the windfall tax on North Sea producers, which they argue means the region has lost some of its appeal in recent years.
The Scottish government’s energy minister, Stephen Gethins, said the decision would cause uncertainty for workers. “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,” he said.
Gethins added that reserved policies, such as the Energy Profits Levy, were driving an accelerated decline of North Sea oil and gas before renewables were fully ready to meet energy needs.
The Scottish Conservatives’ energy spokesman, Andrew Bowie MP, called on the Labour government at Westminster to approve the Jackdaw and Rosebank offshore sites, cancel plans to ban new licences in the North Sea and scrap the Energy Profits Levy.
Reform MSP Duncan Massey said 1,100 workers faced uncertainty with the sale, adding that politicians should not put ideology ahead of jobs and economic reality.
The Scottish Greens said 80 per cent of the oil from the North Sea was shipped overseas and that it was therefore “doing very little to improve our energy security”.
