BP has reportedly held advanced talks about selling its UK North Sea assets to Ithaca Energy in a deal worth close to £2 billion.
The FT reports this morning that discussions between the two companies have stalled in recent weeks, but BP is continuing to explore options for its North Sea portfolio and could still pursue a transaction with another buyer.
BP has operated in the North Sea for more than 60 years and remains one of the basin’s largest producers.
However, its UK assets account for around 120,000 barrels of oil equivalent per day, a relatively small share of the company’s global production of 2.3 million barrels per day.
The reported talks come as BP undertakes a wider restructuring under new chief executive Meg O’Neill, who took over earlier this year.
She is reportedly targeting $20 billion of asset sales by 2027 as the company seeks to reduce debt and simplify its portfolio following pressure from activist investor Elliott Management.
A deal would follow a recent pattern ofconsolidation of the UK North Sea, with companies seeking greater scale amid higher tax burdens and maturing assets.
Recent transactions have included TotalEnergies combining its UK assets with Neo Energy and the creation of Adura, a joint venture between Shell and Equinor.
BP and Ithaca declined to comment on the reported discussions.