The UK's inconsistent policies fail to reverse major players’ exit: bp determined to downsize and sell North Sea assets, potential buyers list emerges

Zhihu Finance APP has learned from informed sources that BP's North Sea business has attracted the interest of potential buyers, including Adura and NEO Next+. The oil giant is currently moving to withdraw from the basin, despite indications from the UK government that more drilling activity may be permitted in the area.

According to sources, other potential bidders who may be studying these assets include EnQuest Plc, Harbour Energy Plc, Ithaca Energy Plc, Serica Energy Plc, and Var Energi ASA.

In May this year, media reported that BP was considering selling its North Sea business. A complete divestment could value these assets at around £2 billion (approximately $2.7 billion).

Adura is a joint venture formed by Equinor ASA and Shell, while the backers behind NEO Next+ include TotalEnergies, Repsol SA, and HitecVision.

The North Sea's appeal to the oil industry has declined, partly due to UK tax policies targeting the sector and government restrictions on exploration and development of new projects.

BP CEO Meg O'Neill said in an interview in August that repeated changes in UK oil and gas policy were a major factor in the decision to withdraw from the North Sea.

According to informed sources, the review is ongoing and it is unclear whether any interested party will proceed with an offer. Some potential bidders (including Var Energi and Harbour Energy) have previously expressed doubts about investing in the North Sea.

A spokesperson for Adura said that the group's top priority is to secure approval for its Jackdaw and Rosebank projects in the North Sea.

Andy Burnham, who became UK Prime Minister in July this year, has suggested that his government may allow more drilling in the basin, but O'Neill said in August that any further policy changes would not sway her decision to sell the assets.

More broadly, BP has been working to divest assets and repay debt. Since the end of last year, the company has agreed to sell most of its stake in its Castrol lubricants unit for $6 billion and has reached a deal to sell its Gelsenkirchen refinery in Germany to Klesch Group. Last month, the company announced it had initiated the process to sell its US biogas business, Archaea Energy.