BP reported a significant increase in profits for the first half of 2026, driven by higher oil prices amid geopolitical tensions in the Middle East, as its new chief executive, Meg O’Neill, outlined plans to overhaul the company’s portfolio and exit the UK North Sea after more than six decades of production.
BP’s underlying replacement cost profit surged by 139 percent to $8.9 billion in the first half of the year, with second-quarter profits reaching $5.7 billion, more than doubling compared to the same period in 2025. The rise in profit was supported by Brent crude prices averaging $103.85 per barrel in the second quarter, up from $67.88 a year earlier, boosted in part by the US conflict with Iran and the closure of the Strait of Hormuz, a key global oil shipping route.
O’Neill, who became BP’s first external chief executive and the first female leader of a major oil supermajor in April, described the North Sea as “not competitive” for current investment, citing years of instability in the UK’s tax regime on oil and gas production. Despite growth potential in undeveloped fields, BP has decided to sell its North Sea assets—a move that could mark the end of its 60-year presence in the basin.
She emphasized that the decision to exit the North Sea was based on investment competitiveness rather than tax adjustments, stating that even changes to the government’s energy profits levy—recently increased by the Labour government to a headline tax rate of 78 percent and extended to 2030—would not alter BP’s plans. The tax hikes added several hundred million dollars to BP’s tax bill in recent years.
BP’s decision has renewed speculation about a potential shift of its primary stock listing from the London Stock Exchange to New York, as the company increasingly focuses on the United States. However, O’Neill dismissed such a move as “really not on the agenda,” affirming BP’s commitment to remain listed in London and to maintain a significant UK presence.
The company employed approximately 1,100 people on five oil platforms in the North Sea and contributed around £4.3 billion to the UK Treasury in 2025. O’Neill expressed hope that the North Sea’s domestic energy resources would continue to be developed under new ownership, stressing the importance of using UK-produced fossil fuels to meet national energy demand and support jobs and tax revenues.
In parallel with exiting the North Sea, BP is continuing its strategic withdrawal from some renewable energy assets. The company plans to sell Archaea Energy, its US renewable natural gas business acquired in 2022, as well as Lightsource BP, the solar company it fully acquired two years ago. O’Neill acknowledged the global challenge of climate change but indicated that certain renewables investments had failed to deliver expected financial returns. BP will instead focus on reducing the emissions intensity of its operations through projects such as green hydrogen production at refinery sites.
The company is also pursuing a target of $20 billion in asset divestments by the end of 2027 and aims to reduce net debt to between $14 billion and $18 billion, potentially achieving this goal sooner than anticipated.
O’Neill’s tenure has coincided with significant internal changes, including the departure of BP’s chairman Albert Manifold amid allegations of misconduct, which he has denied. The company has not commented further on the circumstances.
Overall, BP’s leadership is focused on streamlining the business, prioritizing portfolio value over historical ties, and delivering improved shareholder returns amid a challenging and evolving energy market landscape.