BP is reportedly pursuing buyers for its closed Foinaven oilfield in the North Sea.
Industry sources told news agency Reuters the energy giant is hoping to attract bids with the UK renewing its focus on domestic production.
The government is in favour of further North Sea oil and gas exploration to ensure secure energy supplies, following Russia’s invasion of Ukraine and historic volatility across commodity markets.
Last week, Downing Street held a roundtable – hosted by Prime Minister Boris Johnson – with fossil fuel energy chiefs to discuss the potential of ramping up projects in the North Sea.
This is expected to be a key feature of his upcoming energy strategy, set to be announced over the coming days.
The news follows media reports that Shell is reconsidering its decision to pull out of the Cambo oil projects, alongside bumper shareholder payouts for at both fossil fuel titans earlier this year.
Earlier today, Bjarne Schieldrop, chief commodities analyst at SEB, argued continued curbs on Russian imports could drive Brent Crude prices to $200 per barrel this year.
The EU remains split over whether to follow in the footsteps of the UK and US, and target Russian oil supplies with sanctions.
Oil prices have boomed this year, soaring above the $100 milestone and peaking at 14-year highs of £139 per barrel earlier this month.
Prices remain elevated on both major benchmarks with Brent Crude hovering at $118.20 and WTI Crude at $111.50.
Energy giants offloading ageing basins
BP halted production at the Foinaven field west of the Shetland islands last year after 25 years of activity and is currently preparing to dismantle its floating production vessel.
The London-based company holds 100% interest in the field after acquiring a 28 per cent stake from Viaro Energy last year.
The sale is part of a gradual retreat of BP and other big producers from the ageing basin.
Energy giants have been selling declining assets to smaller companies that specialise in extending late-life fields.
The field still holds reserves of around 200m barrels of oil, which Reuters understands could be tapped in a relatively short time and with minimal investment.
It is unclear how much money BP could get from the Foinaven field given the clean-up and decommissioning, costs that would have to be negotiated,
City A.M has approached BP for comment.