British Petroleum (bp) is in talks with Ithaca Energy, a North Sea oil and gas operator and producer, regarding the sale of its UK North Sea assets in a deal worth nearly $2.69 billion, according to Reuters.While negotiations failed to reach a final agreement in recent weeks, the company continues to explore other options for the assets and could pursue a transaction with other interested parties.

This deal is part of bp’s ongoing plan to review and optimize its asset portfolio. Last month, a Bloomberg report said bp was considering the sale of some or all of its UK North Sea operations.

BP has maintained a presence in the North Sea for more than six decades and operates five major production hubs in the region, including the Clair oilfield, the largest oilfield on the UK continental shelf. 

The company’s North Sea assets currently produce around 117,000 barrels of oil equivalent per day (boe/d), representing a relatively small portion of its global output of approximately 2.3 million barrels per day (mmbbl/d).

The sale discussions come as bp moves forward with a broader restructuring plan under CEO Meg O’Neill, who took office in April. The company is reorganizing its operations into two core divisions, upstream and downstream, and is targeting $20 billion in asset disposals by 2027 to reduce debt, lower costs, and streamline its portfolio.