Oil giant puts North Sea portfolio up for sale as crude price surge fuelled by Iran war boosts appeal of reserves it controls West of Shetland

BP’s plan to sell its North Sea business has left critics of the windfall tax crowing “I told you so”.

However, the move actually underlined the appeal of assets in the area, which was also highlighted last week by a vocal opponent of the levy.

After BP posted a bumper second quarter profit new chief executive Meg O’Neil held up the decision to exit the North Sea as an example of the rigorous focus on the “highest-value opportunities” she expects the firm to show on her watch.

The boss of the former British Petroleum has launched a formal auction of a portfolio which contains interests in more than 20 fields in a move that could bring down the curtain on six decades operating in the North Sea.

Analysts reckon the portfolio could be worth around £2 billion.

The launch of the sale process left 1,100 workers in BP operations run from Aberdeen facing an uncertain future and provoked industry leaders in Scotland to step up their criticism of the Labour Government.

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Aberdeen and Grampian Chamber of Commerce chief executive Russell Borthwick said the announcement from BP should be a defining moment for the new Prime Minister Andy Burnham.

“This decision is another stark reminder that confidence in the UK Continental Shelf has been badly shaken after years of policy uncertainty, punitive taxation and mixed messages about the future of the industry,” declared Mr Borthwick.

Noting that Mr Burnham had talked about taking a pragmatic approach to the North Sea, he said that should include axing the windfall tax well before the........

© Herald Scotland