BP has placed its North Sea oil and gas business up for sale. <\/p>\n
The decision was made just a day after prime minister Andy Burnham signalled a greater willingness to allow new drilling licences amid concerns over the country’s energy security. <\/p>\n
The UK-based firm, which operates five major production hubs including the Clair oil field – the largest on the continental shelf – said its decision formed part of a portfolio review under its new chief executive. <\/p>\n
Money latest: An airline’s plea to PM that could make flights cheaper<\/a> <\/p>\n Meg O’Neill, who took over in April, said: “The UK has been our home for more than 100 years and will continue to play an important role in our future. We’re proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day. <\/p>\n “The North Sea remains integral to the UK’s energy system. 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. It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter. We are seeking an outcome that recognizes that value.” <\/p>\n BP added that it remained committed to operating the business safely and reliably throughout the sale process. <\/p>\n A sale would end 60 years of BP involvement in the North Sea, where it currently employs around 1,100 workers. <\/p>\n It accounted for 5% of its total oil output last year. <\/p>\n But the ageing basin has become less attractive due to windfall taxes and a ban on new drilling under Labour to date. Its energy policies have prioritised a drive towards net zero through investment in renewables including wind and solar. <\/p>\n Mr Burnham said he had told Donald Trump – a fierce critic of the UK’s energy strategy – “we can’t ignore” the resources on the UK’s doorstep, in a shift away from the manifesto pledge the government of Sir Keir Starmer was elected on. <\/p>\n He promised “a pragmatic approach when it comes to the North Sea”, adding: “There is a resource there. When people are struggling, we can’t ignore that.” <\/p>\n BP’s decision comes amid growing concern for energy costs heading into winter caused by the conflict in the Middle East. <\/p>\n Brent crude oil costs for future delivery are currently 22% up on where they stood this time a year ago while those for natural gas are almost 70% higher. <\/p>\n BP’s decision has no wider effect on the UK operations which include an aviation fuel distribution business, retail sites its sprawling trading desk alongside its London headquarters. <\/p>\n BP shares were down by 0.7% at the open. <\/p>\n Read more: The company is focusing on growing profitability through its core oil and gas-linked businesses after a brief shift towards renewable sources of energy hurt its share price compared to that of industry peers. <\/p>\n
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