BP PLC (LSE:BP.) has launched a process to sell its North Sea business as new boss Meg O'Neill seeks to further simplify the oil major's portfolio and concentrate spending on higher-return assets.
The company said the potential disposal formed part of its continuing portfolio review and reflected a more disciplined approach to allocating capital. It did not disclose a possible valuation or timetable for the process.
O'Neill said the North Sea remained "integral to the UK's energy system", but argued that the business could have a stronger future under different ownership.
"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," she said.
O'Neill added that the operation had "world-class people, resilient assets and a proud heritage", which could attract a buyer willing to support its next phase of development.
The announcement marks a significant potential retreat from a region that has been central to BP's operations for decades. However, O'Neill stressed that the UK, where the company has been based for more than 100 years, would continue to play an important role in its future.
BP said it would continue to operate the North Sea business safely and reliably while the sale process was under way.
Shares in BP edged 0.2% higher to 542.9p following the announcement. Rival Shell gained 1.2%.
