(WO) — bp‘s decision to market its UK North Sea business highlights the growing impact of fiscal uncertainty on investment in the basin, according to Brian Gilvary, former bp chief financial officer and current chairman of INEOS Energy.
Gilvary’s comments follow bp’s announcement last week that it plans to sell its UK North Sea assets as part of a broader portfolio review, with CEO Meg O’Neill citing capital discipline and portfolio optimization.
“The challenge for the UK is that unless the Government of the day can create stability around the fiscal regime, the UK North Sea remains unattractive,” Gilvary said. “The Energy Profits Levy, coupled with the ban on drilling, has effectively shut down investment, while the Norwegian sector continues to grow, investing at ten times the rate of the UK.”
Gilvary argued that bp’s planned exit reflects broader concerns over the competitiveness of the UK Continental Shelf, warning that continued policy uncertainty could accelerate the loss of investment, jobs and domestic energy production.
“When companies reduce their exposure to the UK basin, the impact goes far beyond the energy sector,” he said. “It means less investment, fewer high-quality jobs, lower tax revenues and a greater reliance on imported energy.”
He added that the UK still has significant potential to increase oil and gas production while supporting energy security, employment and government revenues, but said achieving that will require a more stable long-term fiscal framework.
The comments add to growing industry criticism of the UK’s Energy Profits Levy, with operators and trade groups arguing that the current tax regime has weakened investment in the North Sea as capital shifts to competing offshore provinces.
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