BP Starts Process for Potential Sale of North Sea Business

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Or sign-in if you have an account.(Bloomberg) — BP Plc said it’s starting a process to market its North Sea business for a potential sale, as part of a wider review of the oil major’s portfolio.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe North Sea unit, which Bloomberg News previously reported could fetch about £2 billion ($2.7 billion) in a full divestment, “will be better positioned as part of another company,” Chief Executive Officer Meg O’Neill said in a statement on Friday.BP has already agreed or completed a series of divestments over the past year, including the sale of its lubricants business Castrol, as it attempts to simplify its portfolio, strengthen the balance sheet and focus investment on its core upstream, downstream and trading operations.BP is the last remaining global oil major to have its own standalone North Sea business after Shell Plc and TotalEnergies SE combined their operations with others to form independent units in the aging offshore basin. Others such as Chevron Corp. and ConocoPhillips have sold their North Sea assets.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe oil industry says the North Sea has become less attractive due to the UK government’s restrictions on exploration and development of new projects, as well as high taxes.“This is one of those “moments” that should serve as a deadly serious wake up call,” Andrew Griffith, shadow business secretary for the opposition Conservative party, said in a statement on Friday. “Britain needs to compete — for energy, capital and talent — but the government carries on putting up taxes and piling on red tape.”London-based BP has been shrinking its own presence in the region over the last decade, including the sales of its interest in the Shearwater field to Shell and the Forties pipeline system to Ineos Group Holdings SA. BP still holds a 45% stake in Clair, the largest oil field on the UK Continental Shelf. BP said it has been producing around 100,000 barrels of oil equivalent per day in the North Sea across five production hubs. That compares with its global output of about 2.3 million barrels per day. The North Sea could be the first sizable disposal under O’Neill, who in April became the first outsider to be appointed BP’s CEO. O’Neill and then-Chairman Albert Manifold had sought to reverse years of underperformance, which has brought pressure from activist shareholder Elliott Investment Management and cost former CEO Murray Auchincloss his job.Manifold has since been removed and O’Neill will now own BP’s turnaround story. The company said this week it will cut about 700 jobs in production and operations. BP reports second-quarter earnings on Tuesday, O’Neill’s first full quarter at the helm.—With assistance from Jamie Nimmo and Dylan Griffiths.(Updates with reaction from the UK shadow business secretary in sixth paragraph.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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