BP to Sell North Sea Oil and Gas Operations

British Petroleum announced on July 31 that it will sell its oil and natural gas operations in the North Sea, ending more than 60 years of activity in the region. Industry analysts attribute this move to frequent changes in UK energy policy in recent years, as well as declines in North Sea oil and gas output. According to Reuters, BP's new CEO Meg O’Neill stated in a press release that the company plans to concentrate resources on developing “the highest value opportunities,” and therefore decided to sell its North Sea operations. BP has operated oil and gas businesses in the North Sea for over 60 years and currently manages five major production hubs locally, including Claire, the largest oil field on the UK continental shelf. Around 5% of the company’s oil and gas output in 2025 originates from the North Sea, with a daily production of approximately 117,000 barrels of oil equivalent. On the day before BP announced the sale, the UK’s new Prime Minister Burnham indicated plans to take a “pragmatic” approach to developing and utilizing North Sea oil and gas resources. Chris Beauchamp, Chief Market Analyst at London-based multinational trading platform IG Group, commented: “Clearly, BP believes that while new oil and gas fields urgently need to be developed, waiting for the new government to revive UK energy policy is too time-consuming, and simply sitting back for government action is not a prudent use of resources.” According to Reuters, UK oil and gas industry insiders believe that repeated adjustments to the oil and gas sector tax regime in recent years have created policy uncertainties, undermining companies’ confidence in investing in UK continental shelf oil and gas resources. North Sea oil and gas output has dropped sharply from an average of 4.5 million barrels of oil equivalent per day at the start of the century to an estimated daily average of about 1 million barrels in 2025. In recent years, multinational energy giants such as ExxonMobil, Chevron, ConocoPhillips, Shell, Total, and Eni have all scaled back their North Sea oil and gas business. (Xinhua News Agency)