EnQuest has confirmed it is interested in purchasing BP's oil and gas interests in the North Sea, CEO Amjad Bseisu said in an interview with CNBC on Thursday.
BP announced on July 31 that it had initiated a process to sell its U.K. North Sea business, marking a major retreat from a basin where the company has operated for approximately 60 years.
Bseisu did not mince words when asked directly whether EnQuest, which operates primarily on the U.K. Continental Shelf, was a bidder. "Yes," he said, adding that the competitive landscape for the assets was narrow. "There's only a handful of companies left, so there's only a handful of companies that would be interested."
BP's North Sea portfolio comprises five production hubs: two in the central North Sea — Andrew and ETAP — and three west of Shetland — Glen Lyon, Clair and Clair Ridge. The division employs roughly 1,100 people, according to BP's website.
The potential sale comes as the U.K. faces growing energy import dependency. Bseisu noted the country now imports about half of its energy, a shift that has driven costs higher. He urged the government to support further development of domestic oil and gas resources, describing the sector as still offering a "tremendous opportunity."
EnQuest itself posted solid first-half results, with adjusted pre-tax profit of $54.6 million on revenues of $529.9 million. Production rose 9% year over year.
The two companies already share a history in the basin. In 2017, BP sold a 25% stake in the Magnus oil field to EnQuest, along with associated pipeline infrastructure and a 3% stake in the Sullom Voe processing terminal in Shetland.
No offer has been made public, and neither company has confirmed a transaction is imminent. BP's sales process remains ongoing.
