BP to quit North Sea after 60 years

BP has put its North Sea business up for sale, potentially ending the oil giant’s six decades of production in the basin.

The FTSE 100 business said the move was part of an ongoing portfolio review as it seeks to cut costs.

Meg O’Neill, the chief executive of BP, 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.”

BP has five oil platforms in the North Sea, employing around 1,100 people. The company, which employs 14,000 people in Britain, said it would keep its global headquarters in the UK in the event of a sale.

The planned exit comes just a day after Andy Burnham hinted that he could reopen the North Sea to fresh oil drilling in the coming weeks.

The Prime Minister declared that Britain “cannot ignore” its oil and gas reserves and revealed he had told Donald Trump he wanted to take a “pragmatic” approach to drilling.

Sir Keir Starmer had previously been criticised by Mr Trump for failing to open up the North Sea.

BP said the decision to launch a sale process was driven by efforts to keep down costs and build a “simpler, stronger and more valuable company”.

Ms O’Neill, who took over as boss in April, pledged earlier this month to make BP “predictable” again after years of boardroom turmoil.

However, she has prompted a wave of upheaval since, with the North Sea sale plan coming a day after the company warned of a looming glut of oil and gas as it prepares to cut 700 jobs.

BP is planning to remove hundreds of “non-front-line” staff as executives warned that the current tightness in the oil market was unlikely to last.

Ms O’Neill said: “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.”

She added that BP has “world-class people, resilient assets and a proud heritage” in the North Sea.

“It is precisely these qualities that can attract an owner ready to back its next chapter. We are seeking an outcome that recognises that value.”

[Source: Daily Telegraph]