bp has announced the launch of a process to explore the potential sale of its North Sea business (bp press release, 31/07/2026).
“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” said bp’s CEO.
The portfolio includes five production hubs: Andrew and Etap in the central North Sea, as well as Glen Lyon, Clair and Clair Ridge west of Shetland. In 2025, bp produced 82,000 b/d of oil and 203mn ft³/d (2.1 bcm/year) of natural gas in the UK.
The sector has experienced increasing fiscal pressure since the UK introduced the Energy Profits Levy in 2022. The levy was raised to 38% in November 2024, bringing the headline tax rate on UK upstream oil and gas operations to 78%, and was extended until March 2030.
The increased tax burden has faced criticism from operators and industry organisations, which argue that it has complicated investment decisions and reduced the attractiveness of the UK continental shelf. Industry association Offshore Energies UK has stated that the current fiscal framework is discouraging capital investment and accelerating declines in domestic oil and gas production (Argus Media, 31/07/2026).
bp’s decision comes at a politically sensitive time for the UK North Sea, as new prime minister Andy Burnham faces pressure over the future of oil and gas drilling in the basin. US president Donald Trump has publicly urged the UK to make greater use of its North Sea resources and criticised the previous government’s approach. The new Prime Minister stated that he had informed Trump he would adopt a "pragmatic approach" to the North Sea during a phone conversation held recently.
Through this potential sale, bp could bring to an end more than 60 years of operating activity in the basin.
From 2019 to 2024, oil production declined by 10%/year but increased by 2% in 2025 to 31 Mt. The UK became a net crude oil importer in 2005 (16 Mt of net imports in 2025). Gas production decreased by 8%/year on average since 2022, reaching 32 bcm in 2025. The country has been a net importer of gas since 2004 (Enerdata Global Energy Research).