* BP operates five major North Sea production hubs including

Clair oilfield

* BP reorganised into upstream and downstream segments this

month

* P.M. Andy Burnham this week signalled support for

continued basin development

(Adds detail and background throughout)

July 31 (Reuters) - BP on Friday launched a formal

sale process for its North Sea business as new Chief Executive

Officer Meg O'Neill accelerates a sweeping portfolio overhaul

aimed at cutting debt and simplifying the oil major.

A day earlier British Prime Minister Andy Burnham said he

planned to take a "pragmatic" approach to developing and using

oil and gas resources in the North Sea, setting out his position

after U.S. President Donald Trump said the basin would be opened

up.

"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," O'Neill

said in a statement.

BP has worked in the North Sea for more than six decades and

operates five major production hubs in the region, including the

Clair oilfield, the largest on the UK continental shelf.

The company has stepped upits efforts to reduce debt, boost

profit and refocus on its oil and gas businesses after scaling

back its investment in renewable energy.

Since O'Neill took over in April, BP has reorganised into

two business segments - upstream and downstream - from three, a

change that took effect this month.

An internal email seen by Reuters on Thursday also disclosed

BP's plans to reduce its workforce by 700.