London, May 4, 2026, 13:53 BST
BP PLC is considering unloading some or all of its UK North Sea assets, according to Bloomberg News—a deal that could net around 2 billion pounds ($2.72 billion) and sharpen CEO Meg O’Neill’s focus on trimming debt while channeling capital into higher-return oil and gas projects. The internal review remains just that for now; Bloomberg notes there’s no guarantee any deal will happen.
This lands at a tricky moment. London markets are closed Monday for the Early May Bank Holiday, leaving investors without a local read on BP since last week. BP shares last traded on Friday, slipping a little more than 2%—Reuters chalked it up to wider market softness.
BP still holds a sizable stake in the North Sea, despite the region’s maturity. According to BP’s website, the company runs five major production hubs in the basin. Clair—recognized as the biggest oilfield on the UK continental shelf—is among them, Reuters noted.
The potential sale lines up with BP’s recent push for a tougher balance sheet. According to a filing, first-quarter underlying replacement cost profit—that’s BP’s favored metric, excluding inventory swings and certain one-offs—climbed to $3.20 billion, up sharply from $1.38 billion the previous year. Net debt ended March at $25.31 billion.
BP’s customers and products segment—home to refining and oil trading—delivered $3.20 billion in underlying profit before interest and tax, a sharp jump from $677 million a year ago. The company called its oil trading performance “exceptional.” Trading, clearly, was the key driver. SEC
O’Neill, facing her first set of results since stepping in as chief executive in April, told Reuters, “We’re controlling what we can control,” as the company worked to ramp up output in response to Middle East disruptions that squeezed flows through the Strait of Hormuz. According to Reuters, BP had been sending about 100,000 barrels per day through the critical waterway from Iraq and Abu Dhabi, with 5% to 10% of its liquefied natural gas portfolio also moving along that route. Reuters
BP is putting its cash discipline front and center. The company’s aiming to get net debt down to somewhere between $14 billion and $18 billion by the close of 2027. For 2026, capital spending is projected at $13 billion to $13.5 billion. As for divestments, BP expects proceeds of $9 billion to $10 billion this year, roughly $6 billion of that coming from the Castrol deal already announced.
BP’s North Sea review could see the company following a pattern set by other big players stepping back from older UK offshore projects. Chevron, Shell, and TotalEnergies have either offloaded assets or reshaped their exposure in the basin, according to Reuters.
This sale isn’t straightforward. There’s no guarantee BP will make a full exit, and a deal—if it comes—would have to address oil price volatility, tax implications, buyer interest, and the hefty decommissioning bills tied to dismantling old offshore sites. BP also flagged that second-quarter upstream output will fall short of the first, citing seasonal maintenance in the Gulf of America and unrest in the Middle East.
For O’Neill, the North Sea review is shaping up as an early signal: can BP convert a war-fueled trading surge into a more consistent pitch for investors? The market already got the upside surprise on profits. Left on the table is the question of just how much of BP’s legacy portfolio the new chief intends to offload.
