BP confirmed on Friday it is launching a process to market its North Sea business for a potential sale.

BP’s North Sea business has five production hubs — two in the central North Sea and three west of Shetland — and produced 117,000 barrels of oil equivalent per day in 2025.

Roughly 1,100 staff work for BP’s North Sea business, part of BP’s 14,000-strong UK workforce.

“The decision forms part of bp’s ongoing portfolio review and reflects its disciplined approach to capital allocation – all in service of creating a simpler, stronger and more valuable company,” said the company.

BP CEO Meg O’Neill said: “The North Sea remains integral to the UK’s energy system. However, as we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company.

“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.”

Aberdeen & Grampian Chamber of Commerce CEO Russell Borthwick said: “Today’s announcement from BP should be a defining moment for the new Prime Minister. How many more jobs need to be lost before the UK Government acts?

“This decision is another stark reminder that confidence in the UK Continental Shelf has been badly shaken after years of policy uncertainty, punitive taxation and mixed messages about the future of the industry.

“The Prime Minister has spoken about taking a pragmatic approach to the North Sea. He now has an opportunity to turn those words into action.

“That means delivering on the commitment to replace the Energy Profits Levy with the Oil & Gas Revenue Levy – which includes a permanent windfall tax mechanism that would apply when prices are high – well before 2030.

“It is imperative that we create a stable, long-term fiscal regime and ensure our regulatory system can approve investment at the pace required.

“The North Sea remains one of the UK’s greatest strategic assets. It underpins our energy security, supports hundreds of thousands of skilled jobs and generates billions for the public finances.

“But unless investors have confidence that Britain is open for business, more capital, more jobs and more expertise will continue to leave.

“BP’s decision should not be viewed in isolation. It is the latest signal that the UK is at a crossroads.

“The new Prime Minister has a genuine opportunity to reset the relationship with our offshore energy sector and restore confidence before more investment is lost.

“Industry is not asking for special treatment. It is asking for certainty, stability and a policy framework that recognises the continued importance of domestic oil and gas while we build the energy system of the future.”

Offshore Energies UK CEO David Whitehouse said: “BP’s decision to market its UK upstream business is a significant moment for the sector and should prompt serious reflection.

“The North Sea offers substantial opportunities. But opportunity alone does not attract capital. The Prime Minister has spoken about taking a pragmatic approach to the North Sea.

“There is now an opportunity to demonstrate that commitment by delivering a policy and fiscal framework that gives businesses the confidence to invest in UK projects.

“Investors need long-term certainty, a competitive tax regime and a regulatory system capable of making timely decisions.

“At a time when secure, sustainable and affordable energy is at the forefront of public debate, the question is whether the UK wants to attract investment into its own energy resources or become increasingly reliant on imports which often come with higher emissions.

“The answer is more homegrown energy: renewables and domestic oil and gas working together to deliver energy security, lower emissions and economic growth.

“The UK has the skills, the infrastructure and the world-class supply chain to remain a global energy leader. But investment is mobile. Without supportive policies, capital, jobs and expertise will continue to flow elsewhere. The UK must be the place for energy investment.”