BP sells North Sea oil and gas business after six decades

BP has launched a formal process to sell its North Sea oil and gas business, a move that will end six decades of production in the region. The announcement was made on July 31, 2026, as the company seeks to simplify its operations and reduce debt under new CEO Meg O’Neill.

The sale affects BP’s long-standing presence in the North Sea, which began in 1964 with its first UK licence. The company discovered the West Sole gas field in 1965 and the giant Forties field in 1970, marking key milestones in its history there.

CEO Meg O’Neill stated that the North Sea remains integral to the UK’s energy system, but the business would be better positioned under another owner as BP focuses capital on higher-value opportunities. She emphasized that the UK will continue to play an important role in BP’s future, highlighting the jobs created and contributions to the economy.

The sale process comes amid broader changes at BP, including O’Neill’s appointment on April 1, 2026, and the subsequent removal of chair Albert Manifold less than two months later over governance concerns. The decision also follows comments from Andy Burnham about a pragmatic approach to North Sea drilling, and Energy Secretary Miatta Fahnbulleh’s assurance that she is in close contact with BP to protect workers and communities.

Market analyst Chris Beauchamp of IG called the sale a watershed moment, suggesting BP is not willing to wait for government policy to evolve when the need to exploit new energy fields is pressing. Fahnbulleh acknowledged that oil and gas will remain part of the energy mix for years, underscoring the North Sea’s role as a vital national asset.

The formal marketing process is now underway, with BP signaling that its North Sea operations will transition to new ownership as the company reshapes its portfolio.