BP to exit North Sea after UK government tax hike on domestic oil production

Published Jul 31, 06:30 AM UTC

BP has announced it will sell its North Sea oil division following a UK government tax increase on domestic oil production, marking the first time in decades the British energy giant will have no petrochemicals production in its home market. The London-listed company plans to market its North Sea assets as part of a major restructuring overseen by CEO Meg O'Neill, who has already sold the Castrol lubricants division and several low-yield gas assets. BP aims to achieve $20 billion in asset divestitures by year-end. The decision comes amid a challenging operating environment in the North Sea, characterized by windfall taxes, new drilling bans, and reduced financial attractiveness despite higher energy prices due to the Iran war. O'Neill stated that while the UK remains important to BP's future, the North Sea business would be better positioned under another owner. BP is currently one of the largest operators in the region, with stakes in about 20 oil fields.