BP Moves to Sell North Sea Business as UK Weighs Drilling Policy

BP announced Friday it is exploring a sale of its North Sea business, a decision coming as new Prime Minister Andy Burnham faces pressure to loosen drilling restrictions in the region.

BP Shifts Focus to Higher-Value Assets

BP chief executive Meg O’Neill said the North Sea remains an important part of the UK’s energy system, but the company believes the business would be better placed under another owner as BP narrows its focus toward higher-value opportunities. The North Sea portfolio includes five production hubs and employs about 1,100 people. BP said it remains committed to the UK, where it has operated for more than a century and will keep its global headquarters, noting the roughly 14,000 staff it employed across the country last year.

Political Pressure Over North Sea Drilling

US President Donald Trump has repeatedly urged Britain to boost North Sea oil and gas output, claiming Burnham told him during their first call that he would “open up North Sea oil.” Burnham responded that he intends to take a pragmatic approach, acknowledging the resource exists and that struggling households cannot be ignored.

Labour’s Balancing Act on Energy Policy

Labour took power in 2024 promising no new drilling licences as part of its shift toward renewable energy, and Burnham has pledged to honor that manifesto commitment. At the same time, he has promised bold action on living costs, including plans to remove VAT from electricity bills this winter, as rising Middle East tensions continue pushing up energy prices.