BP looking to sell North Sea business

(Sharecast News) - BP said on Friday that it was launching a process for the potential sale of its North Sea business.

The oil giant said the decision forms part of its ongoing portfolio review and reflects its "disciplined approach to capital allocation" as it looks to create "a simpler, stronger and more valuable company".

Chief executive Meg O'Neill said: "The UK has been our home for more than 100 years and will continue to play an important role in our future. We're proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day.

"The North Sea remains integral to the UK'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. We are seeking an outcome that recognizes that value."

Chris Beauchamp, chief market analyst at IG, said: "It says a lot when BP isn't prepared to stick around to see if the new government can re-energise the UK's energy policy. Clearly BP thinks it will take too long at a time when the need to exploit new energy fields is pressing, and waiting around for Whitehall to move is not a prudent use of resources."

At 0929 BST, the shares were up 0.7% at 546.50p.