BP shares ticked up on Wednesday following a Financial Times report that the FTSE 100 energy company engaged in advanced talks to sell its UK North Sea assets to Ithaca Energy for nearly
The Financial Times said the near
The report identified Ithaca Energy, a unit of the Delek Group, as the party with which BP had been negotiating. BP and Ithaca already have a joint operational relationship at the Vorlich oilfield, located east of Aberdeen. Sources cited by the report said the near
Sources also told the Financial Times that BP remains open to pursuing a sale, potentially engaging other interested companies if necessary. The reported talks form part of a wider divestment strategy by BP: the company has pledged to complete $20 billion of disposals by 2027 following pressure from activist investor Elliott Management.
As part of that effort, BP previously sold a majority stake in its
BP's divestment activity has included the sale last year of a majority stake in Castrol, its lubricants unit, in a transaction valued at $10 billion. The company is also reported to be weighing disposals of portions of its petrol station networks as well as parts of its renewable energy operations.
Even though BP has a six-decade history of operating in the North Sea and remains a major basin participant, its UK production represents only about 120,000 barrels per day out of the company's total output of roughly 2.3 million barrels per day, the report said.
Chief executive Meg O'Neill, who moved into the role with a restructuring plan and renewed emphasis on oil and gas production, said after taking charge that she saw "untapped potential" in the UK North Sea. The report added that she has cautioned against further windfall taxes on the sector.
The company is also undergoing a leadership shake-up: the FT reported that BP's chair, Albert Manifold, was dismissed last week, less than two months after O'Neill assumed the top executive role.