Energy giant BP to sell off North Sea arm after decades putting 1,100 jobs at risk

BP has put its business in the UK North Sea up for sale, ending more than 60 years of oil production. Some 1,100 staff work for the North Sea business and it operates five major production hubs which produced 117,000 barrels of oil equivalent per day in 2025. BP said this was part of ongoing efforts to slim down the group by selling off parts of the business Credit: Getty BP has five major production hubs in the North Sea Credit: Alamy The energy giant said the decision forms part of ongoing efforts to slim down the group by selling off parts of the business. The announcement comes after Prime Minister Andy Burnham left the door open for future North Sea drilling as he confirmed he told Donald Trump “we can’t ignore” the resources there. Sign up for the Money newsletter Thank you! The Prime Minister said that he had reassured the US President he would take a “pragmatic approach” to drilling after Mr Trump’s lobbying for Britain to ramp up North Sea exploration. This is despite Labour’s 2024 manifesto which said the party would not issue new North Sea licences. But it is thought Mr Burnham, who moved could be more willing to exploit the energy in the North Sea. The PM said on Thursday: “There is a resource there. When people are struggling, we can’t ignore that.” Chief executive Meg O’Neill said she believed the North Sea business, which has around 1,100 staff, would be “better positioned as part of another company”. Ms O’Neill, who took over the role in April said: “The North Sea remains integral to the UK’s energy system.” Most read in Money She continued: “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. “It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter.” Mr Trump has long been calling for the UK to ramp up its North Sea drilling. The Tories have also pushed Mr Burnham to expand oil drilling. But Labour’s manifesto commitment to ban any new drilling licences was issued as part of then-energy secretary Ed Miliband‘s net zero drive. Supporters of North Sea drilling have argued that securing more oil and gas supplies from the area will improve Britain’s energy security and stop it relying so much on foreign imports. However environmental groups have rallied against the move and said it distracts from investing in renewable energy alternatives and will not automatically lower energy bills for households. Deputy Labour leader Lucy Powell has said the manifesto commitment to ban new North Sea licences will stay in place. A possible compromise could be to give the go-ahead to the Rosebank and Jackdaw oil and gas fields that are awaiting decisions. Both have already been granted licences but need approval from new Energy Secretary Miatta Fahnbulleh. Comment now