BP CEO Meg O’Neill Unveils North Sea Exit and 5-Priority Turnaround as Q2 Profit Doubles to $5.7B

UK policy instability cited. O'Neill said repeated changes in UK government policy on oil and natural gas contributed to the decision to exit . She also publicly urged UK Energy Secretary Ed Miliband to prioritise domestic oil and gas production even as BP exits .

Rationale. O'Neill stated the North Sea unit "will be better positioned as part of another business" as BP focuses its portfolio on higher-return assets .

Broader Divestment and Turnaround Strategy (the "Reset")

Alongside Q2 earnings, O'Neill — marking roughly her first 100 days in the role — acknowledged that BP had fallen short of its potential and outlined five strategic priorities :

1. Strengthen the balance sheet. BP reduced net debt by $3 billion from the prior quarter to help fund the turnaround .

2. Portfolio simplification and high-grading. In addition to the North Sea, BP launched processes to sell its Archaea Energy renewable natural gas business and exited its Badenswaard position, aiming to focus on higher-return assets . BP has since completed the sale of its Gelsenkirchen refinery and agreed to sell its Austrian retail business .

3. Cost and capital discipline. BP expects 2026 capital spending of $13.5–$14 billion and targets $8–$9 billion in total divestment proceeds .

4. Operational reliability reset. O'Neill flagged that upstream plant reliability and refining throughput fell short of expectations and required improvement .

5. Shareholder returns. BP raised its dividend by 4% as a signal of confidence .

Context and Outlook

O'Neill characterized the current environment as "one of the most volatile periods within global energy markets," with Q2 profit boosted by elevated oil prices from the Iran conflict, strong refining margins, and robust trading performance . Operating cash flow reached $10.9 billion, helping BP accelerate its debt reduction target by one year . Despite the strong financial results, O'Neill stressed there was "more to do" because BP was "not making the most" of its potential .