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BP Weighs North Sea Exit in Strategic Review Under New CEO

The raised windfall levy has pushed the effective tax rate to about 78%.

Overview

  • BP has begun an internal review under new chief executive Meg O’Neill that could lead to selling about £2bn of UK North Sea assets or a broader pullback, according to Bloomberg.
  • BP says its UK portfolio still has “significant untapped potential” and it has not made any decision on a sale or exit.
  • The UK’s energy profits levy, combined with ring‑fenced corporation tax, takes North Sea operators’ headline rate to about 78%, which industry groups say is deterring new investment and threatening future jobs and output.
  • BP reported £2.4bn in first‑quarter profit and said oil trading linked to the Iran conflict lifted the result.
  • After those results, Energy Secretary Ed Miliband said profiting from a crisis is wrong and defended taxing windfall gains to fund cost‑of‑living support.