After 60 years: British Petroleum is selling its North Sea oil business

British Petroleum (BP) is putting its North Sea business up for sale, a move that will end 60 years of oil production in the region by the company, according to a BBC report. The decision follows an activity report published by BP at a time when it is trying to downsize.

Its North Sea business includes five production hubs – two in the central North Sea and three west of the Shetland Islands. It employs about 1,100 people there. Earlier this week, British Prime Minister Andy Burnham told US President Donald Trump that he would take a "pragmatic approach" regarding North Sea oil and gas. Trump, several trade unions, industry figures, and Labour Party MPs support expanding drilling in the North Sea.

"The UK has been our home for more than 100 years and will continue to play an important role in our future," BP CEO Meg O'Neill said yesterday, Friday. "We are proud of the jobs we create, our contribution to the UK economy, and the work we do to ensure energy keeps flowing every day." The company said it would remain committed to the safe and reliable operation of its business throughout the sale process.

BP's North Sea drilling produced 117,000 barrels of oil per day in 2025, a small fraction of the oil giant's total daily production of 2.3 million barrels. O'Neill, who took office in April, said earlier this year that the North Sea has "unrealized potential." However, in her statement yesterday, she said: "We are focusing our portfolio and directing capital to the highest-value opportunities, but believe the North Sea business will thrive more as part of another company. It includes first-class employees, resilient assets, and a proud tradition, and these are exactly the qualities that can attract a new owner who will be ready to support their next chapter. We are looking for an outcome that recognizes these values."

The sale could bring BP about two billion pounds. Last month, the Financial Times reported that the company was in talks with Ithaca Energy to sell its North Sea assets for a similar amount, although they failed. BP employs about 13,960 people in the UK, and its global headquarters will remain in the country. About two months ago, the company dismissed Chairman Albert Manifold due to "unacceptable failures and management issues."

A focus of political controversy

North Sea drilling is a focus of political tension in the UK. The Labour Party is internally divided on the matter, and in its 2024 election manifesto, it promised not to issue new drilling licenses, while honoring only existing ones. However, in recent months, against the backdrop of rising global oil prices following the war in Iran, calls for expanding drilling have increased – from the Conservatives, the Reform UK party, and Trump.

Some MPs from the party are calling on the government to adopt a more liberal approach to drilling, arguing that the transition from fossil fuels to renewable energy must be done while protecting jobs and energy prices for consumers. On the other hand, other members of the party support the government's current approach, arguing that expanding renewable energy is the key to improving the country's energy security and reducing climate damage. Ed Miliband, who served as Energy Secretary in Sir Keir Starmer's government, was a staunch supporter of the original position. Today, in Burnham's government, he serves as Foreign Secretary. Burnham himself, however, seems to be leaving the door open for the possibility of further drilling in the future. This week he said he told President Trump: "There is a resource there. When people are in distress – you cannot ignore that."