Israeli-owned North Sea firm bids to capitalise on retreat of majors amid oil price surge fuelled by war on Iran

News that BP held talks to sell its North Sea business has been seized on by critics of the oil and gas windfall tax although it made clear some firms remain keen to invest in the area.

BP was reported this month to have held talks about the sale of its entire North Sea oil and gas production portfolio to Ithaca Energy for £2bn.

The sale would have been loaded with symbolism amid fears the once mighty North Sea industry is on a path of decline that will leave it playing only a minor role in the global energy ecosphere.

London-based BP has been active in the North Sea since the early days of the basin. The group employs around 1,000 people in Aberdeen and offshore operations run from the city.

These include stakes in the Clair field West of Shetland, which is the biggest on the UK Continental Shelf.

 Ithaca is a relative newcomer compared to BP. It is owned by an Israeli corporation.

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The talks between the firms were reported by the FT, which said new BP chief executive Meg O’Neill had expressed concern about the North Sea fiscal regime.

A veteran of the US oil business, Ms O’Neill was recruited to shake-up BP following a period in which the firm invested heavily in low carbon energy projects only to decide it could make more money in the hydrocarbon production business.

The report of the talks between BP and Ithaca provided ammunition for opponents of the windfall tax, who have claimed it has made the North Sea “uninvestable”.

Criticism intensified after Labour chancellor Rachel Reeves increased the rate to........

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