BP weighs £2bn North Sea sale amid political backlash over profits

BP is reviewing plans to sell its North Sea assets for around £2 billion. The move comes as political pressure mounts over the company’s record profits and energy pricing. New CEO Meg O’Neill has signalled openness to the sale amid ongoing debates about taxation and fuel costs.

The potential sale follows criticism from Labour’s Ed Miliband, who called BP’s soaring profits 'morally and economically wrong'. He accused the company of 'profiting from a crisis', adding to tensions between the government and energy firms.

Shadow Chancellor Rachel Reeves also sparked controversy by claiming oil firms were using high prices to 'fleece drivers'. However, the Competition and Markets Authority reported that fuel margins at pumps had stayed 'broadly unchanged' since the start of the Iran conflict. O’Neill dismissed calls for a new windfall tax, calling it 'a highly flawed response'. Meanwhile, the Chancellor has already gained over £350 million in extra VAT from higher pump prices in the last two months. Labour’s recent policies—blocking new North Sea drilling and extending the windfall levy—have pushed taxes on oil and gas profits to 78%. Critics argue that increasing domestic production is now vital, given ongoing supply risks from the Middle East.

BP’s possible £2 billion North Sea sale reflects both financial strategy and political pressure. With taxes on energy profits at 78% and fuel pricing under scrutiny, the decision could reshape the UK’s oil sector. The outcome will depend on how the company balances profitability with regulatory and public demands.