London (AFP) – BP has launched moves to sell its North Sea business, the British oil and gas giant announced Friday, as new Prime Minister Andy Burnham faces pressure to ease drilling restrictions in the area.
“The North Sea remains integral to the UK’s energy system,” BP chief executive Meg O’Neill said in a statement. “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,” she added. BP’s North Sea portfolio comprises five production hubs and employs about 1,100 people, the company noted Friday as it maintained its commitment to the UK.
“The UK has been our home for more than 100 years and will continue to play an important role in our future,” O’Neill said. “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.” BP, which employed nearly 14,000 staff in total across the UK last year according to its latest figures, said its global headquarters would remain in the country.
– Trump pressure –
US President Donald Trump has repeatedly called on Britain to ramp up oil and gas production in the North Sea. Trump claimed that Burnham said in a first call between the pair last week that the prime minister would “open up North Sea oil.” Questioned on the matter, Burnham told reporters Thursday: “I indicated in the phone call …that I would take a pragmatic approach when it comes to the North Sea, and that is my intention as we go forward. There is a resource there. When people are struggling, we can’t ignore that,” he added.
Ruling centre-left Labour took power in July 2024 promising not to issue any new oil and gas drilling licences as it bids to steer Britain away from fossil fuels towards renewable energy. Burnham, who replaced Starmer as Labour Party leader and prime minister earlier this month, has vowed to abide by all the party’s 2024 election manifesto commitments. But he has also promised the most radical governing agenda in decades to ease the cost of living, which has been made worse by the Middle East war pushing up energy bills.
Those favouring greater North Sea drilling argue that it would help to reduce such bills, while providing Britain with greater energy security. Burnham, who has vowed his government would focus on the cost of living crisis, has already announced plans to remove value added tax (VAT) from electricity bills this winter.
© 2024 AFP
