BP has announced the sale of its UK North Sea oil and gas assets, ending over six decades of operations in the region. This decision follows the collapse of advanced negotiations with Ithaca Energy for a deal valued at nearly 2 billion pounds, approximately 2.69 billion dollars. The UK’s fiscal framework, with a 78% effective tax rate on upstream activities, has made operations less attractive for major energy groups. The move is part of a broader corporate overhaul aimed at redirecting capital toward higher-return opportunities. BP’s withdrawal raises questions about the market’s ability to absorb assets of this scale given such a restrictive tax environment.
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