BP to exit North Sea after UK government windfall tax hike

Published Jul 31, 07:06 AM UTC

BP has announced it will sell its entire North Sea oil division following the UK government's increased windfall taxes on domestic oil production, marking the first time in decades the British energy giant will have no petrochemical production in its home market. The London-listed company told investors it plans to market its North Sea assets as part of a major restructuring overseen by CEO Meg O'Neill, who is splitting the group into upstream and downstream divisions and focusing on the most profitable assets. BP has already sold its Castrol lubricant division and less productive gas assets, targeting $20bn in divestments by year-end. The decision follows months of speculation due to the UK's punitive tax environment and a ban on new North Sea drilling imposed by Prime Minister Keir Starmer's government. However, Labour mayor Andy Burnham has suggested he may partially overturn the ban and push through licenses for the Jackdaw and Rosebank projects. The move has sparked concern from industry leaders, with the Aberdeen and Grampian Chamber of Commerce calling it a 'defining moment' for UK energy policy.