BP has put its UK North Sea business up for sale, a move set to end more than 60 years of oil and gas production by the major in the basin. The formal sales process follows failed talks earlier this year with Ithaca Energy over a near £2bn deal.
BP has put its UK North Sea business up for sale, a move set to end more than 60 years of oil and gas production by the major in the basin. The company operates five hubs in the North Sea, employing 1,100 people and producing just under 100,000 barrels of oil and gas a day.
According to BP chief executive Meg O'Neill: "The North Sea remains integral to the UK's energy system". She added that BP believes that, as it focuses its portfolio and directs capital to its highest-value opportunities, the North Sea business will be better positioned as part of another company.
Earlier this year, BP held advanced talks with Ithaca Energy about a near £2bn deal for the business, though the two sides didn't reach an agreement. BP is one of the last oil majors with a standalone business in the North Sea, as others have merged their assets or offered them for sale.
UK premier calls for a 'pragmatic' approach
The sale follows comments from new UK Prime Minister Andy Burnham, who promised a pragmatic approach to drilling in the North Sea after a phone call with US President Donald Trump. Burnham said this week that there is a resource in the basin that can't be ignored while people are struggling.
O'Neill said soon after taking the role that she saw untapped potential in the North Sea, though BP said the formal sales process reflects a disciplined approach to capital allocation. The company added that its global headquarters will remain in the UK, where it has been based for more than 100 years and expects to keep an important role in its future.
Source: Markets
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