BP has announced plans to sell its North Sea oil and gas business in a move that could end the company’s more than 60 years of production in the region as it embarks on a wider restructuring of its global portfolio.

The sale is part of a strategic review to streamline BP’s operations and target investment on higher-return assets. The North Sea portfolio comprises five production hubs, two in the central North Sea and three west of Shetland, with around 1,100 employees.

BP said it would continue to run the assets safely and reliably during the sale process.

But the planned sale would not change the fact the UK remains central to BP’s future, chief executive Meg O’Neill said.

The North Sea business had staff, assets in place and a long operating history, making it well positioned under new ownership, she added.

The North Sea operations produced about 117,000 barrels of oil equivalent a day in 2025, a relatively small share of BP’s global output of 2.3 million barrels a day.

Industry analysts estimate the assets could be worth around £2bn. Last month the Financial Times reported that BP had held talks with Ithaca Energy over a potential sale, but no deal was done.

BP has some 13,960 employees in the UK. The company said its global headquarters would stay in the UK.

Sale under government watch

“The sale process is ongoing, and the protection of employees and affected communities remains a priority,” said UK Energy Secretary Miatta Fahnbulleh, adding that the government is in regular contact with BP.

The announcement comes amid fresh political debate over the future of North Sea oil and gas production.

Under Labour, the government has pledged in its 2024 election manifesto not to issue new offshore drilling licences but to honour existing ones. But rising global oil prices and concerns over energy security have amplified calls from opposition parties, industry groups, trade unions and some Labour MPs for more North Sea development.

Earlier this week, Prime Minister Andy Burnham said he had told US President Donald Trump the government would adopt what he called a “pragmatic approach” to North Sea oil and gas policy.

The government should not overlook domestic energy resources as households continue to feel economic pressure, Burnham said.

Labour’s deputy leader Lucy Powell said the government was still committed to the position in its manifesto, but there could be a shift of emphasis on North Sea energy policy.

Splits on Future Energy Strategy

The debate has exposed divergences of opinion in UK politics.

Some Labour MPs say that keeping oil and gas flowing during the transition to clean energy is needed to protect jobs, investment and the affordability of energy.

Others argue that increasing the use of renewable energy is the best long-term solution to both improving energy security and reducing greenhouse gas emissions.

Oil and gas producers have also continued their attack on the Energy Profits Levy, or windfall tax, saying it has cut investment in the UK Continental Shelf.

Scottish Energy Minister Stephen Gethins said the BP decision would create uncertainty for workers and warned that fiscal policies set by Westminster had accelerated the decline of North Sea production before renewable energy capacity was fully in place.

The UK government should approve the proposed Jackdaw and Rosebank offshore developments, drop plans to ban new exploration licences and scrap the Energy Profits Levy, the Scottish Conservative energy spokesman Andrew Bowie has said.

Reform UK MSP Duncan Massey said the sale had created uncertainty for BP’s workforce and urged policymakers to put employment and the economy before the environment.

The Scottish Greens said much of the oil produced in the North Sea was exported and more drilling would have little impact on the UK’s domestic energy security.