British Petroleum (bp) is launching a process to market its North Sea business for a potential sale, as part of its ongoing portfolio review and its approach to capital allocation for creating a simpler, stronger, and more valuable assets, according to bp statement.
The company had been in talks in June with Ithaca Energy, a North Sea oil and gas operator and producer, over the sale of its UK North Sea assets in a deal valued at nearly $2.69 billion, according to Reuters.
While the negotiations failed to reach a final agreement in recent weeks, bp continues to explore other options for the assets and could pursue a transaction with other interested parties.
“The North Sea remains integral to the UK’s energy system. 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,” said Meg O’Neill, CEO of bp.
The CEO added that the company is seeking an outcome that recognizes the value of the North Sea business, which she described as having “world-class people, resilient assets and a proud heritage.”
The company’s North Sea portfolio has been operating for more than six decades and comprises five production hubs: Andrew and ETAP in the central North Sea, and Glen Lyon, Clair and Clair Ridge west of Shetland.
The North Sea accounted for about 5% of bp’s total oil and gas production in 2025, with output of around 117,000 barrels of oil equivalent per day (boe/d) out of a total of 2.3 million boe/d, according to Reuters.
bp employed 13,962 people in the UK in 2025, including around 1,100 employees in its North Sea business.
Since early 2025, bp has been reshaping its portfolio by reducing spending on lower-priority activities, increasing investment in its core oil and gas operations, and pursuing asset sales to strengthen its balance sheet.
As part of this strategy, bp recently sold a 15% working interest in its Iraqi subsidiary, BP Energy Company of Kirkuk Limited (BP ECKL), to Türkiye Petrolleri Anonim Ortaklığı (TPAO).
This came after ConocoPhillips announced the acquisition of a 42% interest in BP ECKL.
Separately, bp agreed on July 16 to divest minority stakes held by its venture investment arm, bp Ventures, in more than 10 portfolio companies to investment firm Verdane.
