LONDON — On Friday, July 31, 2026, British oil and gas giant BP announced it has launched a process to sell its North Sea business. The move comes as new UK Prime Minister Andy Burnham encounters pressure to ease restrictions on drilling in the region.

"The North Sea remains integral to the UK's energy system," BP chief executive Meg O'Neill said in a statement. However, she added, "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's North Sea portfolio includes five production hubs and employs approximately 1,100 people. The company reaffirmed its commitment to the UK, which will continue to host its global headquarters.

BP has recently reduced investments in clean energy, shifting focus back to its more profitable oil and gas operations. Despite this, the North Sea assets are not considered highly profitable for BP, even if drilling restrictions are loosened.

The Financial Times reported in June that BP held unsuccessful talks to sell the North Sea business to smaller British company Ithaca Energy for £2 billion (US$2.7 billion).

Prime Minister Burnham faces calls to increase North Sea drilling to help lower energy bills and enhance Britain's energy security, especially in light of disruptions caused by Russia's invasion of Ukraine. Former US President Donald Trump claimed that Burnham told him in a recent call that the UK would "open up North Sea oil," though Burnham has been questioned on this matter.

Meanwhile, Shell reported on Thursday that its net profit tripled to US$10.8 billion in the April-June period, influenced by soaring oil prices amid the US-Iran conflict.

Sources