British oil giant BP announced plans Friday to sell off its North Sea business ending six decades of exploration and extraction on the U.K. Continental Shelf since the company first struck gas there in 1964. File photo by Neil Hall/EPA
July 31 (UPI) — British oil giant BP announced plans Friday to sell off its North Sea business, ending six decades of exploration and extraction in the U.K. Continental Shelf since the company first struck gas there in 1964.
The firm said that nothing would change for the time being while a buyer was found, vowing in a news release that it was fully committed to continuing to run its operations, prioritizing safety and dependability, while delivering for its customers, partners and investors.
The outcome of a review of its portfolio, BP said the goal was to enhance the value of the company by making it simpler and stronger through adhering to its approach of allocating capital in a rigorous fashion.
“The North Sea remains integral to the U.K.’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,” said BP.
“We are seeking an outcome that recognizes that value.”
CEO Meg O’Neill stressed that Britain would remain of key importance to the company going forward, saying BP was proud of the employment it generated, its input to the economy and its role in keeping energy flowing every day.
As recently as May, O’Neill described the North Sea basin as one of “untapped potential.”
The share price gained slightly on the news, rising a little more than 1% to $7.36 in mid afternoon trade on the London Stock Exchange on Friday.
BP has 24 fields across five main nodes in the North Sea, including its key Clair Ridge and Schielhallion fields of the Shetland Islands, with 1,100 workers pumping a little under 100,000 barrels of gas and oil daily.
Energy consultant Rystad, which estimates the North Sea business was worth $2.6 billion, told the Financial Times that it believed that the TotalEnergies-HitecVision-Repsol joint venture Neo Next +, Delek Group of Israel or Eni of Italy were in the running to buy it.
