BP has placed its North Sea oil and gas business up for sale, potentially ending six decades of production in the region. The proposed sale covers five production hubs and about 1,100 employees as chief executive Meg O’Neill reduces the company’s portfolio and directs spending towards higher-value operations.
BP said its wider UK operations would continue, including its global headquarters and businesses outside North Sea production. The company employs about 13,960 people across the country and said it would operate the assets safely and reliably while seeking a buyer.
North Sea Assets Produce 117,000 Barrels a Day
BP’s North Sea business produced about 117,000 barrels of oil equivalent per day in 2025. That represented roughly 5% of its worldwide production of 2.3 million barrels per day.
The five hubs include two in the central North Sea and three west of Shetland. In its official sale announcement, BP said the business had experienced employees, resilient assets and a long operating history.
O’Neill said the assets could be better positioned under another owner willing to support their future development. She had previously described the North Sea as having untapped potential but said BP was now concentrating capital on its most valuable opportunities.
A sale could raise about £2 billion. BP reportedly held advanced discussions with Ithaca Energy over a transaction near that value, but the negotiations ended without an agreement.
Workers Face Uncertainty During Sale Process
Energy Secretary Miatta Fahnbulleh said she was in close contact with BP and that protecting employees and local communities was her immediate priority. She described the North Sea as an important national asset and said oil and gas would remain part of the UK’s energy supply for years.
Scottish Energy Minister Stephen Gethins said the announcement would create uncertainty for workers. He argued that UK policies, including the Energy Profits Levy, were accelerating the decline of North Sea production before renewable sources were ready to meet energy needs.
Scottish Conservative energy spokesperson Andrew Bowie called for the government to approve the Jackdaw and Rosebank projects, abandon its proposed ban on new licences and remove the levy. Reform MSP Duncan Massey said the jobs of 1,100 workers were now uncertain.
The Scottish Greens said about 80% of North Sea oil was exported and argued that further extraction would contribute little to domestic energy security.
North Sea Policy Divides UK Political Parties
Labour’s 2024 election manifesto promised to honour existing drilling licences while issuing no new ones. Prime Minister Andy Burnham has since said his government will take a pragmatic approach, telling US President Donald Trump that the available resource could not be ignored while households faced financial pressure.
Trump, some trade unions, industry representatives and Labour MPs support increased North Sea drilling. Other Labour politicians favour the existing restrictions and argue that renewable energy is necessary for energy security and lower emissions.
Labour deputy leader Lucy Powell said Burnham would maintain the party’s manifesto commitments but introduce a change in emphasis. BP’s sale adds further pressure to the debate over taxation, future licences, employment and the pace of the UK’s transition away from oil and gas.
Featured image credits: Wikimedia Commons
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