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BP CEO Meg O’Neill
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BP Plc’s Meg O’Neill said the company has received approaches for its North Sea business just days after announcing it’s up for sale, and any changes in UK policy won’t sway her into keeping the assets.
Several potential buyers have expressed interest in the unit, the energy giant’s new chief executive officer said, adding that repeated changes in UK policy on oil and natural gas contributed to the decision to exit the basin, along with efforts to strengthen the balance sheet.
“We still think there is untapped oil and gas potential in the basin,” she said in a Bloomberg TV interview. “Hopefully we’ll see some good things from this new government.”
Oil companies say the UK has become less attractive for investment as a result of policies on taxes and exploration, with the previous government opposed to new drilling. Andy Burnham, who took office as prime minister in July, has said he won’t ignore the resources in the North Sea.
“We stand by to continue working with the UK government on designing a fiscal framework, but that’s not going to change our mind,” O’Neill said on a call with journalists.
BP is the last remaining global oil major to have its own standalone North Sea business after rivals Shell Plc and TotalEnergies SE combined their operations with others to form independent units in the aging offshore basin.
“That’s a decision that was not made lightly,” O’Neill said on Bloomberg TV, noting that the company has had a presence in the North Sea for more than 50 years. “It’s simply a question of capital discipline and capital allocation within BP.”
— With assistance from Olga Tanas and Alex Longley
(Updates with CEO comment on UK policy impacting North Sea asset sale from first paragraph.)
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