BP Eyes $2.7B UK Exit to Fund Growth as Oil Prices Rise on Supply Concerns

BP is considering a sale of all or part of its UK upstream portfolio for around £2 billion ($2.7 billion), according to a report from OilPrice.com. Talks with potential buyer Ithaca Energy fell through earlier this month, but the move aligns with the company's strategic direction to shift attention to regions with greater growth potential than the mature UK basin, where no exploration wells were drilled last year for the first time since 1964.

The potential divestiture would help BP reach its $20 billion divestment target by the end of 2027. The company sold $5.3 billion in assets in 2025 and guides for another $9–10 billion in sales this year, OilPrice.com reported. BP's first-quarter 2026 net income more than doubled quarter-on-quarter to $3.2 billion, but net debt also jumped 14% to $25.3 billion. A sale of the UK portfolio, which Rystad Energy values at $3.4 billion unrisked, could impact production by around 60,000 barrels of oil equivalent per day.

This retreat coincides with an aggressive exploration push elsewhere since BP's strategy reset in early 2025. The company has discovered about 2.7 billion barrels of oil equivalent in recoverable resources net to BP since 2025, according to Rystad Energy estimates cited by OilPrice.com. This includes the giant Bumerangue discovery in Brazil, estimated to hold 8 billion barrels of liquids in place. New CEO Meg O’Neill has set a target to raise BP’s reserve replacement ratio to 100% by 2027, from around 76% currently.

Global Oil Prices Gain Meanwhile, global oil prices rose as delayed US-Iran negotiations and slower tanker traffic through the Strait of Hormuz renewed supply concerns, Rigzone reported Friday. The geopolitical tension underscores the volatility in global supply chains that can impact Bakken crude pricing differentials.

Renewables Impact on Gas Markets In other energy news, Scatec's Obelisk solar and battery storage project in Egypt can save the country as much as $400 million a year in liquefied natural gas imports, according to CEO Terje Pilskog, Rigzone reported Saturday. While a distant market, such large-scale renewable projects can influence global LNG supply and demand balances, indirectly affecting associated gas economics in oil-producing regions like the Bakken.

For Bakken operators, BP's strategic pivot highlights a broader industry trend of capital reallocation from mature, high-cost basins to areas with superior growth economics. While the Williston Basin is not a named target in BP's current exploration hopper, the company's intensified global search for large-scale resources underscores the competitive landscape for capital and the premium placed on tier-one assets.