BP Having a Rough Go, But Resilient Off U.S. Coast

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

After more than 100 years, British energy company BP isn't looking very British after trying to sell off its North Sea business. Amid sell-offs, the company is kickstarting operations in the U.S. Gulf of Mexico.

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Things Would be Better with Someone Else, BP Says

British energy company BP said it was selling off its North Sea business after more than 100 years of operations, a day after announcing the start of an expansion project in U.S. waters.

Industrial Info Resources data find BP has a total investment value of US$3.2 billion in projects in the United Kingdom. The largest by value is the Teesside net-zero natural gas program. The grassroot power plant would be able to deliver 742 megawatts of clean energy to the grid once operations begin in early 2029.

On Friday, however, the company announced that its operations in the United Kingdom would be better served by another owner.

"The North Sea remains integral to the U.K.'s energy system," Meg O'Neill, the company's chief executive officer, said Friday. "However, as we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company."

BP has been on something of a fire sale this year. In early July, it offloaded its minority stake in the planned Bay du Nord offshore production project in the Atlantic Ocean, leaving Norwegian major Equinor as the sole owner. For more on that, see July 7, 2026, article - BP Exits Canada's Bay du Nord Offshore Project.

The Bay du Nord development in Canadian waters will be a floating production, storage and offloading platform. Industrial Info Resources data show plans call for drilling around 40 development wells in five locations for the project to support 160,000 barrels per day (bpd) of oil production. First oil is expected in 2031.

Less than two weeks later, ConocoPhillips said it would secure a 42% interest in a BP division in northern Iraq, working to develop four large-scale oil fields in the Kirkuk region.

First-quarter profits soared 132% for the London-based supermajor, climbing to US$3.2 billion compared to US$1.4 billion during the same period last year.

The company credited "exceptional" performance by its oil traders with helping to pump up first-quarter profits. Gas marketing and trading, by contrast, turned in an "average" result, the company said.

Still a Player in the U.S. Gulf

Higher production in the Gulf of Mexico and strong performance at its BPX Energy subsidiary helped offset the impact of disruptions in the Middle East and further North Sea divestments at the end of 2025, BP said in its first-quarter earnings statement.

Capitalizing on its U.S. offshore footprint, the company announced Thursday that it started an expansion of its Atlantis program in the Gulf of Mexico. The expansion added new injection wells to improve reservoir pressure to boost gross annualized average production by 10,000 barrels of oil equivalent per day (boe/d).

"Atlantis has been one of the anchors of our Gulf business for nearly two decades, and this expansion proves there is still more value to be generated," said Andy Krieger, senior vice president for the Gulf of America and Canada.

The expansion was completed ahead of schedule and under budget. Industrial Info Resources had put the total investment value at US$120 million.

Second quarter earnings for the supermajor, meanwhile, are expected on August 4.

By the Numbers

• 10,000 boe/d boost from Atlantis program in the U.S. Gulf
• 132% increase in first-quarter profits year-on-year for BP

Key Takeaways

• Amid selloffs, BP still a major player in the U.S. Gulf
• BP could nevertheless post gains in second quarter earnings amid higher crude oil prices.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).