BP has put its North Sea oil and gas business up for sale, as it looks to end decades of production from the region.
The oil major announced on Friday morning that it had launched a formal process to market its North Sea business for a potential sale. The move comes as BP’s new chief executive, Meg O’Neill, tries to simplify the company and cut its debt levels.
“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,” O’Neill said in a statement.
O’Neill also said the UK would “continue to play an important role” in BP’s 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 said.
The sale announcement comes a day after Andy Burnham said he will take a “pragmatic” approach to oil and gas drilling in the North Sea, saying the government could not ignore the potential energy resources it holds.
The energy secretary, Miatta Fahnbulleh, said she was in close contact with BP over its plans.
“The North Sea is a vital national asset and we will take a pragmatic approach, recognising that oil and gas will be part of our energy mix for years to come,” she said.
“I’m in close contact with BP and have made clear that my priority is ensuring that the workers and local community are protected during this sale process.”
O’Neill took over as BP’s CEO on 1 April. Less than two months later the company removed its chair, Albert Manifold, citing serious concerns about “important governance standards, oversight and conduct”.