BP may exit part or all of its operations in the UK North Sea as the energy giant works to restructure its assets and debts, according to sources.
The move has sparked concern among those who believe it reflects the negativity towards the oil and gas sector from the UK and Scottish governments.
However, the North Sea is in decline and energy giants are assessing their long term commitments to the basin.
BP’s new chief executive Meg O’Neill, and chairman Albert Manifold are also focused on tackling its debt and reversing years of underperformance which has brought pressure from activist shareholder Elliott Investment Management and cost former CEO Murray Auchincloss his job.
At an earnings conference call in April, Ms O’Neill said BP had to ask what assets might be of greater value in someone else’s hands.
The London-listed energy giant is conducting an internal review of its upstream operations in the UK, which could raise about £2 billion ($2.7 billion).
BP has a market capitalisation of around £90 billion, boosted by the rising price of oil that has followed the conflict in the Middle East.
However, it has accumulated $27bn of debt and is targeting about $20 billion in divestments by the end of 2027.
It has been shrinking its presence in the North Sea over the last decade, including via the sales of its interest in the Shearwater field to Shell and the Forties pipeline system to Ineos Group. It retains a 45% stake in the Clair Field — the largest oil field on the UK Continental Shelf.
Peers such as Chevron Corp. and ConocoPhillips have sold assets in the basin, while others such as Shell, Exxon Mobil and TotalEnergies have also divested or restructured parts of their business.
Reform UK leader in Scotland, Malcolm Offord claimed government policy was behind BP’s proposed move.
“That BP is even considering walking away from the North Sea is an absolute hammer blow for Scotland and it’s entirely down to bad policy.
“The groupthink of successive Westminster and Holyrood government with their taxes and net zero dogma have effectively killed a crucial Scottish industry, costing jobs and driving investment overseas.
“We’ll end up importing more energy while our own resources are left in the ground.
“It’s economic self-sabotage. Reform UK would scrap the windfall tax, back North Sea jobs and put Scotland’s energy future first.”
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