BP has put its North Sea business up for sale, ending six decades of production in the region, while AI companies helped drive a record surge on South Korea's stock market and British Airways owner IAG reported a steep fall in profits.
Key facts
- BP is seeking a buyer for its North Sea business, ending 60 years of production in the region, according to the BBC.
- The decision follows a review of BP's operations amid a political dispute over future drilling licences.
- AI companies led a record surge on South Korea's Kospi stock market.
- IAG, owner of British Airways, reported a steep fall in profits and expects no growth in passenger capacity this year.
The British oil company BP has put its North Sea business up for sale and is searching for a buyer, according to reporting from the Guardian and BBC. The move comes amid a political dispute over the future of drilling licences in the region.
According to the BBC, the decision follows a review of BP’s operations and is set to end 60 years of production in the North Sea by the oil giant.
In a statement, BP said the UK had been its home for more than 100 years and would continue to play an important role in its future. The company said it was proud of the jobs it creates and its contribution to the UK economy. “The North Sea remains integral to the UK’s energy system,” it said, but added that as it focuses its portfolio and directs capital to its “highest-value opportunities,” it believes its North Sea business “will be better positioned as part of another company.”
BP described the business as having “world-class people, resilient assets and a proud heritage,” qualities it said could attract an owner “ready to back its next chapter.”
Elsewhere in markets, AI companies led a record surge on South Korea’s stock market, according to the Guardian’s live business coverage, with the Kospi index reaching record levels.
International Airlines Group (IAG), the owner of British Airways, reported a steep fall in profits and said it expects no growth in passenger capacity this year as the US-Israeli war in Iran takes its toll. IAG said it expected demand to stay strong but that its “disciplined cost control” could only partly mitigate the impact of “a significant fuel price increase” caused by the attacks on Iran. Iran closed the strait of Hormuz in response to the attacks, a key export route for oil from the Gulf.
Despite the pressures, IAG said its results demonstrated “excellent fundamentals” supporting “continued value creation for our shareholders, despite the impact of the crisis in the Middle East and wider geopolitical events.”
Why it matters
BP's exit from the North Sea marks the end of a 60-year era of production and raises questions about the future of jobs and energy supply in a region central to the UK's energy system. Meanwhile, the contrast between record gains for AI stocks in South Korea and falling airline profits underscores how geopolitical tensions in the Middle East are reshaping global markets.
Frequently asked questions
Why is BP selling its North Sea business?
According to the BBC, the decision follows a review of BP's operations. BP said that as it focuses its portfolio and directs capital to its highest-value opportunities, it believes the North Sea business will be better positioned as part of another company. The move also comes amid a political dispute over future drilling licences.
How long has BP operated in the North Sea?
The sale is set to end 60 years of production in the region by BP, according to the BBC.
Why did IAG's profits fall?
IAG said profits fell due to a significant fuel price increase caused by attacks on Iran in the US-Israeli war. Iran closed the strait of Hormuz, a key oil export route, in response to the attacks.