BP has announced plans to sell its North Sea oil and gas business, bringing to an end more than six decades as an operator in one of the UK’s most important offshore energy regions.
The move forms part of a wider portfolio review under chief executive Meg O’Neill, as the energy major seeks to focus investment on higher-value opportunities while reshaping its global asset base.
BP said it believes its UK North Sea operations would be “better positioned as part of another company”, despite describing the business as comprising resilient assets, a skilled workforce and a strong operational heritage.
The business includes five major production hubs, including the Clair oil field, and employs around 1,100 people. BP said it remains committed to operating the assets safely and reliably throughout the sale process.
The announcement comes as the UK government signals a more pragmatic approach to North Sea oil and gas development amid growing concerns over long-term energy security.
Higher energy prices have also sharpened the focus on domestic production, with Brent crude trading around 22% above year-ago levels and natural gas prices significantly higher than a year earlier.
BP’s shares were modestly lower in early trading following the announcement as investors assessed the implications of the planned disposal.
