Andy Burnham is facing demands to end Labour's Net Zero 'madness' and axe a controversial windfall tax after BP's bombshell announcement it is pulling out of the North Sea.The energy giant is putting its North Sea business up for sale as it seeks to end six decades of oil and gas production in the basin.The Prime Minister was told the news should serve as a 'deadly serious wake up call' over the future of Britain's huge natural resource amid warnings of an industry 'extinction'.Opposition parties called on the Government to scrap the 'punitive' Energy Profits Levy and lift the ban on new North Sea oil and gas licences imposed by Labour's Ed Miliband when he was energy secretary.BP's announcement on Friday morning came just a day after Mr Burnham admitted that North Sea oil revenues could ease the cost of living crisis.He hinted at a shift in Labour's ideological ban on new North Sea drilling, which is part of the party's 2024 manifesto, saying that at a time of tight public finances the North Sea was a resource 'we can't ignore'. Experts have predicted that lifting the ban imposed by Mr Miliband, who is now Foreign Secretary, could generate £25billion in extra tax revenues for the UK over the next decade and support thousands of jobs.But industry figures suggested BP had decided it isn't prepared to stick around to see if Mr Burnham can re-energise UK energy policy.The 117-year-old firm is set to no longer be part of North Sea production after it announced it is putting its North Sea business up for sale as part of a strategy to slim down the group. BP is putting its North Sea business up for sale as it seeks to end six decades of oil and gas production in the basin It comes just a day after Prime Minister Andy Burnham admitted that North Sea oil revenues could ease the cost of living crisis The move has been blamed on the impact of punitive taxes and the Government's Net Zero drive, which has been spearheaded by Labour's Ed MilibandBP chief executive Meg O'Neill, said: 'The North Sea remains integral to the UK's energy system.'However, as we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company.' Earlier this year, BP held talks with Ithaca Energy over a near £2billion deal for the North Sea business, which employs around 1,100 people, but no agreement was reached.BP's North Sea business has five production hubs – two in the central North Sea, and three west of Shetland – and produced 117,000 barrels of oil equivalent per day in 2025.Commenting on BP's planned withdrawal, Andrew Griffith - the Tory party's business spokesman - said: 'This is one of those 'moments' that should serve as a deadly serious wake up call.'Britain needs to compete - for energy, capital and talent - but the Government carries on putting up taxes and piling on red tape.'Andrew Bowie, the shadow energy minister, said: 'BP has been drilling in British waters for six decades, but because of Labour's disastrous Net Zero dogma it faces extinction.'Andy Burnham should break with the past do what the Conservatives have called for and immediately approve the Jackdaw and Rosebank sites and cancel their plans to ban on new licences in the North Sea.'Scottish First Minister John Swinney, the SNP leader, said: 'Westminster's supertax on jobs is hurting Scotland, especially the north east.'The UK Government must scrap the Energy Profits Levy and urgently act to protect jobs.'As well as Mr Miliband's ban on new North Sea licences, Labour has been accused of blocking billions of pounds of investment after shelving proposals to scrap a controversial windfall tax.Following the outbreak of the Iran war, then-Chancellor Rachel Reeves backtracked on plans to announce an early end to the Energy Profits Levy, which is due to expire in 2030.A spike in energy prices as a result of the Middle East crisis led Ms Reeves to put those plans on ice, which infuriated the industry.The Energy Profits Levy was introduced as a temporary measure by the previous Tory government following Russia's full-scale invasion of Ukraine.Combined with other taxes, it means the overall tax rate faced by oil and gas companies operating in the UK is currently 78 per cent.In her first Budget in 2024, Ms Reeves had previously increased the windfall tax on North Sea oil and gas producers to 38 per cent from 35 per cent and extended the levy by one year.Reform UK's deputy leader Richard Tice said: 'This is yet another damning indictment of Britain's failed energy strategy.'Years of punitive windfall taxes and ideological net stupid policies by both Labour and the Conservatives have made the UK one of the least attractive places to invest in oil and gas.'The North Sea still has billions of barrels of oil and gas left to produce but for some bizarre reason this Government prefers to import our energy from abroad. Reform UK would end this madness.SNP MP David Doogan, the party's Westminster leader, said: 'Workers don't want thoughts or warm words from the Prime Minister, we need decisive action to safeguard jobs, energy security and confidence in the North Sea.'What we have here is an historic business that has employed thousands of Scottish workers and a major part of the Scottish economy opting to leave the North Sea.'The destruction of one of Scotland's foremost industries is happening right before our very eyes.'There is no moral high ground to be found in ruining oil and gas jobs in Scotland to sponsor those very same jobs half way around the world at a higher carbon cost, with our energy security put at risk and renewables investment lost.'In her first Budget in 2024, Ms Reeves had previously increased the windfall tax on North Sea oil and gas producers to 38 per cent from 35 per cent and extended the levy by one year.Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said: 'Today's announcement from BP should be a defining moment for the new PM. How many more jobs need to be lost before the UK Government acts?'This decision is another stark reminder that confidence in the UK continental shelf has been badly shaken after years of policy uncertainty, punitive taxation and mixed messages about the future of the industry.'The PM has spoken about taking a pragmatic approach to the North Sea. He now has an opportunity to turn those words into action.'Mr Burnham on Friday reiterated that he would be 'pragmatic' about the future of drilling in the North Sea when asked about BP putting its North Sea business up for sale.'There are a set of issues relating to the North Sea that I'm looking at,' he told reporters.'Obviously we have decisions looming relating to Jackdaw and Rosebank, there are issues related to the Energy Profits Levy that people have raised with me.'I'm looking at all of those things. I've indicated that I'll be pragmatic about the North Sea.'When people are struggling and when we need to help people you can't ignore the resources that you've got, but we'll make further decisions in due course.'He added: 'The question isn't whether Britain will be using oil and gas, the question is where does it come from.'It came after the PM yesterday hinted at a shift in the Government's approach now that he has replaced Keir Starmer in Downing Street.He revealed how he had previously told US President Donald Trump that he would take a 'pragmatic approach' to fossil fuels during their first talks last week.It came after Mr Trump said Mr Burnham - who he referred to as 'the new gentleman' - had told him he was going to 'open up North Sea oil'.Speaking in the White House, the US President added: 'You have one of the most valuable oil finds anywhere in the world, and if the UK would use it, they'd be a wealthy country again.'And I tell you what, I could not get Starmer to use it. It was incredible.'Chris Beauchamp, chief market analyst at investing and trading platform IG, said: 'It says a lot when BP isn't prepared to stick around to see if the new Government can re-energise the UK's energy policy.'Clearly BP thinks it will take too long at a time when the need to exploit new energy fields is pressing, and waiting around for Whitehall to move is not a prudent use of resources.' Ms O'Neill, who took charge in April, is leading a reorganisation of BP's business and a pivot back towards fossil fuels after a disastrous foray into renewable energy projects. She had previously said the North Sea had 'untapped potential' but operations have become increasingly challenging thanks to windfall taxes and Labour's ban on new drilling. The Energy Secretary Miatta Fahnbulleh said that she was in close contact with BP over the potential sale. 'The North Sea is a vital national asset and we will take a pragmatic approach, recognising that oil and gas will be part of our energy mix for years to come,' she said.'I'm in close contact with BP and have made clear that my priority is ensuring that the workers and local community are protected during this sale process.'The Government is facing calls from the energy sector to approve the Jackdaw gas field east of Aberdeen and Rosebank oil field west of Shetland.Mr Burnham could claim not to be breaking Labour's manifesto pledge by approving the two projects, where licences were previously granted by the Tory government, while still not issuing any new licences.Consultations on Jackdaw and Rosebank are due to run until August 10 and August 17, respectively.The trade body Offshore Energies UK said the two fields could generate almost £30billion by the end of the next parliament.Jackdaw's owner said it could supply gas for 1.4million homes, starting this winter - reducing reliance on imports and the risk of a 'gas supply emergency'. BP said its headquarters would remain in the UK. 'The UK has been our home for more than 100 years and will continue to play an important role in our future,' Ms O'Neill said. She added: 'We're proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day.' It emerged yesterday that the oil giant was preparing to slash 700 jobs in its upstream division - the discovery and extraction of crude oil - but not front-line roles such as technicians. The aim is to streamline BP and boost returns amid signs of 'potential oversupply and lower oil and gas prices'.