BP May Sell Up to £2bn North Sea Assets After 78% Windfall Tax Hike
Chief executive Meg O’Neill is reviewing 20 to 25 North Sea fields and may sell assets worth up to £2bn after windfall taxes rose to a 78% effective rate, costing BP an extra £539m. Such a sell-off would end BP’s 60-year UK waters presence as it seeks higher returns.
1. CEO Review and Potential Sale
Chief executive Meg O’Neill has ordered a comprehensive review of BP’s 20 to 25 producing fields in the UK North Sea, weighing a sale of all or part of these offshore operations for up to £2bn. No final decision has been reached, but a divestment would mark the exit of one of the last oil majors from UK waters.
2. Windfall Tax Impact
The review follows a government windfall tax increase that raised the effective rate on UK offshore profits to 78%, which cost BP an additional £539m in the latest annual report and created uncertainty around project economics. BP reported "exceptional" first-quarter earnings of £2.4bn from oil trading, partially offsetting the tax burden.
3. Implications for North Sea Presence
BP has already divested assets such as the Shearwater field, Magnus platform and Forties pipeline system, reflecting industry-wide reactions to higher taxes and shifting investment priorities. A sale of the remaining North Sea portfolio would end BP’s 60-year operational history in the region, reshaping the UK oil and gas landscape.
4. Strategic Outlook and Next Steps
In parallel, BP is evaluating long-term value creation and exploring broader strategic moves including a possible US stock market listing. Leadership has emphasized that assets not aligned with BP’s long-term growth targets could be better positioned in other hands, signaling a significant shift in corporate strategy.