BP refuses to comment on reports of talks to sell North Sea assets

BP has refused to comment on reports of talks with another energy firm to sell its North Sea assets.

The UK oil giant has reportedly held discussions with Ithaca Energy about the possible sale, in a deal that could be worth nearly $2bn.

It follows a few dramatic months for BP – its chairman was ousted amid allegations of bullying, and profits have soared ,fuelled by conflict in the Middle East.

The first major firm to extract oil from the North Sea more than six decades ago now appears set to leave.

A British Petroleum worker on the North Sea oil rig Sea Quest in 1973. Getty Images

The new chief executive Meg O’Neill started on April 1 and is the first CEO hired from outside the company.

Her task has been to turn around the firm which has been underperforming for some time, and she has wasted no time in doing so.

Last month, it was reported BP was conducting an internal review of its North Sea business.

This has been followed by the Financial Times reporting that the oil company has held talks Ithaca to sell its assets in the region.

While both companies are not commenting on the speculation, there’s little doubt BP is looking elsewhere around the world to see where profits can be made.

BP has already sold its stakes in the Andrew area, Shearwater field and the Forties pipeline.

However, it is still a big player, and any deal could be worth nearly $2bn, with its assets split across five production hubs in the North Sea.

But the new chief executive has already warned against fresh windfall taxes in response to rising wholesale prices and profits because of the conflict in the Middle East.

The company’s first quarterly profits more than doubled because of the recent surge in oil prices, making $3.2bn between January and March.

That, along with the global profits of other firms, increased calls from some campaigners for the windfall tax to be extended.

Perhaps now BP has had enough.

However, BP’s board also finds itself in turmoil with the sudden removal of its chair Albert Manifold.

The company said that was over “serious concerns raised to the Board related to important governance standards, oversight and conduct”.

However, Manifold has hit back saying he doesn’t accept the “lies” about his behaviour.

If BP is really ready to leave the North Sea, it would be a major blow to the UK.

It would raise questions for the thousands of staff, many in Aberdeen, who work in the UK.

BP wouldn’t be the first to decide to exit the North Sea, and it won’t be the last if it does so.

However, as a pioneer of oil in the region with deep historic ties, it would be the most symbolic yet.