BP has declared the UK North Sea basin no longer competitive, with the company's chief executive urging the government to eliminate windfall taxes on oil and gas production.
The intervention comes as the energy major navigates a complex exit strategy from the region, having recently launched a formal sale process for its UK North Sea business.
This move signals a definitive end to more than six decades of continuous oil and gas production by BP in the region, underscoring the structural challenges facing legacy operators in the UK sector.
The call for tax relief is directed at Labour leader Andy Burnham, who is currently preparing to approve new oil and gas drilling licenses as part of a broader policy overhaul.
While the government's decision to issue new licenses marks a significant shift in the party's energy stance—prioritizing domestic security and economic activity—the industry argues that the current fiscal regime undermines the viability of these projects.
BP's leadership contends that without a reduction in the windfall tax burden, the North Sea cannot attract the necessary investment to maintain production levels or compete with other global basins.