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British energy giant BP announced Friday that it has kicked off a process to sell its North Sea oil and gas business as part of a broader effort to streamline operations and channel investment toward its most profitable assets.
The business up for sale includes five production hubs, Andrew and ETAP in the central North Sea, and Glen Lyon, Clair and Clair Ridge west of Shetland, and employs around 1,100 workers, the company said.
The assets produced around 117,000 barrels of oil equivalent per day in 2025, or roughly 5% of BP's global oil and gas output, and include the Clair field, the largest oilfield on the UK continental shelf.
While BP has not disclosed a valuation for the business, the Financial Times reported the company previously explored a deal with Ithaca Energy worth about £2 billion ($2.7 billion), though the talks did not lead to a sale.
BP stressed that the sale would not affect its broader presence in the UK, where it operates the Air bp aviation fuel business, a retail network with one of the country's largest electric vehicle charging networks, joint ventures in carbon capture and storage and offshore wind, and its global supply, trading and shipping hub in London.
The company also said its global headquarters will remain in the U.K.
BP described the move as part of an ongoing portfolio review aimed at creating "a simpler, stronger and more valuable company" by directing capital toward its highest-value opportunities.
"The UK has been our home for more than 100 years and will continue to play an important role in our future. We're proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day," Chief Executive Meg O'Neill said.
She added that while the North Sea remains a key part of Britain's energy system, BP believes the business would be better positioned under new ownership as the company focuses its portfolio.
"It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter. We are seeking an outcome that recognizes that value," she added.
The announcement comes as the future of North Sea oil and gas has returned to the center of Britain's energy debate, with the new Labour government facing pressure to balance energy security, climate goals and the cost-of-living crisis.
While the government's energy strategy maintains that no new exploration licenses will be issued, it has signaled support for extending production from existing fields and developing nearby reserves through so-called "tieback" projects linked to current infrastructure.
U.S. President Donald Trump has repeatedly urged Britain to expand North Sea oil and gas production, arguing that greater domestic output would strengthen energy security and reduce reliance on imports.
After speaking with Trump this week, Prime Minister Andy Burnham said his government would take what he described as "a pragmatic approach" to the basin, pointing to economic pressures and the continuing role of oil and gas in the UK's energy mix.
However, he stopped short of announcing any change to Labour's pledge against issuing new exploration licenses.
Burnham's remarks have fueled speculation over the future of major developments such as the Rosebank and Jackdaw projects, which remain tied up in regulatory and legal processes.
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