BP Exits North Sea After 60 Years as UK Energy Register Shows 5.6 Million Active Companies

BP has announced it is putting its North Sea business up for sale in a decision that would end 60 years of production in the region by the oil giant, according to BBC Business^[1]. The move follows a review of BP's operations as the company seeks to slim down its portfolio.

The North Sea business operates five production hubs - two in the central North Sea and three west of Shetland - and employs approximately 1,100 people^[1]. In 2025, the business produced 117,000 barrels of oil equivalent per day, representing a small fraction of BP's 2.3 million barrels of daily global production^[1].

Strategic Portfolio Shift

"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 chief executive Meg O'Neill stated on 31 July 2026^[1]. O'Neill, who took the helm at BP in April, had previously described "untapped potential" in the North Sea earlier this year^[1].

The sale could potentially bring in £2 billion to BP^[1]. The Financial Times reported last month that the company was in talks with Ithaca Energy to sell its North Sea assets for around this amount, although those discussions fell through^[1].

BP employs around 13,960 people across the UK, and the company has confirmed its global headquarters will remain in the country^[1]. Energy Secretary Miatta Fahnbulleh said she was in close contact with BP, with her priority being to ensure that "the workers and local community are protected during this sale process"^[1].

Political Context

The announcement comes amid ongoing political debate over North Sea drilling policy. Earlier in the week preceding the announcement, Prime Minister Andy Burnham told US President Donald Trump he would take a "pragmatic approach" to the issue of North Sea oil and gas^[1]. Trump, along with some trade unions, industry figures, and Labour MPs, backs increased drilling in the North Sea^[1].

In its 2024 general election manifesto, Labour stated it would not issue new licences for drilling, but would honour existing ones^[1]. However, in recent months, as the Iran war pushed up global oil prices, calls have grown for more North Sea drilling to be approved from the Conservatives and Reform UK^[1].

UK Company Register Context

The BP divestment occurs against a backdrop of broader corporate activity across the UK economy. As of August 2026, the CompanyPulse company register^[2] shows 5,567,517 active companies across all sectors and industries in the United Kingdom.

Across the whole UK register, 109,821 companies are currently in liquidation, 4,716 in administration, 969 in receivership, and 2,663 under voluntary arrangements^[2]. These are economy-wide totals encompassing all business sectors, not specific to energy or extraction industries.

The register recorded 14,594 new company incorporations in the seven days to 1 August 2026^[2]. Daily incorporation counts across the UK register in late July 2026 ranged from 23 companies on 1 August 2026 to 3,480 companies on 13 July 2026^[2], reflecting the economy-wide level of new company formation activity.

The register tracks 33,356,682 active company officers and 3,491,996 resigned officers across the entire UK company population^[2], providing a view of directorship and management activity across all industries.

Future Ownership

BP has stated it remains committed to operating the business safely and reliably throughout the sale process^[1]. The company is seeking an outcome that recognises the value of what O'Neill described as "world-class people, resilient assets and a proud heritage"^[1].

The identity of the eventual buyer will determine the future trajectory of these North Sea assets. With BP's production in the region representing 117,000 barrels of oil equivalent per day^[1], the sale represents a significant transfer of UK energy infrastructure. The outcome may also influence the broader debate over the UK's energy security and the balance between fossil fuel production and renewable energy transition.