BP has announced its intention to sell its North Sea oil division, a decision that will leave the British energy company without any petrochemicals production in its home market for the first time in decades.
The London-listed oil giant informed investors of its plans to market its assets in the region as part of a significant restructuring overseen by CEO Meg O’Neill. O’Neill had previously outlined a vast overhaul for BP, which involves splitting the group's structure into two divisions – upstream and downstream – and focusing on its most profitable assets.
The company has already divested its lubricant division Castrol and several less productive gas assets, aiming for $20bn in divestments by the end of this year. O’Neill stated on Friday, "The UK has been our home for more than 100 years and will continue to play an important role in our future. 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."
BP is currently one of the largest operators in the North Sea, with stakes in roughly 20 fields. The decision follows speculation regarding the impact of the tax environment on the region, which has been described as one of the least financially attractive drilling areas globally due to years of windfall taxes and a ban on new drilling.