BP is planning to reduce its stakes in two major carbon capture and storage (CCS) projects in northeast England as the company continues scaling back parts of its low-carbon strategy.
The oil major intends to sell portions of its holdings in the Net Zero Teesside (NZT) project and the Northern Endurance Partnership (NEP). NZT aims to develop the UK’s first gas-fired power plant equipped with carbon capture technology, while NEP is focused on building offshore infrastructure to transport and store CO2 beneath the North Sea.
Both projects are considered central to the UK ’s carbon capture ambitions and BP ’s decision marks another shift in the company’s broader energy transition strategy following leadership changes in recent years.
Projects Backed Under Previous Leadership
The CCS developments were strongly supported by former BP chief executive Bernard Looney, who described them as a major opportunity for industrial decarbonisation.
However, since his departure, the company has gradually moved away from parts of its green agenda amid pressure from shareholders and changing market conditions. BP said the “time is right” to bring in additional partners to support the long-term future of the projects.
The company did not disclose how much of its stakes it plans to sell or whether discussions with buyers are already underway. Other companies involved in the projects include Equinor and TotalEnergies.
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The move also comes amid reports that BP is reviewing its broader UK and North Sea operations. According to reports, the company’s new chief executive, Meg O’Neill, is reassessing BP’s global portfolio and may reduce exposure to the UK market.
This follows growing tensions around UK energy policy, including restrictions on new North Sea exploration licences and debates over windfall taxes on oil and gas producers.
O’Neill has already announced plans to dismantle BP’s gas and low-carbon division, signalling a return to a more traditional oil and gas-focused structure.
Despite the changes, construction on the NZT and NEP projects has already begun. The development highlights ongoing uncertainty around large-scale carbon capture investments as energy companies reassess transition strategies and shareholder priorities.
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