Shell and Equinor are set to create a new independent oil and gas producer in the UK North Sea, equally owned by both companies.
This strategic move aims to maximise value from their combined portfolios in the maturing basin, ensuring continued economic recovery of vital UK resources.
The Aberdeen-based joint venture will encompass key assets from both companies, including Equinor’s interests in Mariner, Rosebank and Buzzard, and Shell’s stakes in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion.
The deal, expected to complete by the end of 2025, is subject to regulatory approvals.
Philippe Mathieu, Equinor’s Executive Vice President for Exploration and Production International, said: “Equinor has been a reliable energy partner to the UK for over 40 years, providing oil and gas, developing the offshore wind industry, and advancing decarbonisation.
“This transaction strengthens Equinor’s near-term cash flow, and by combining Equinor’s and Shell’s long-standing expertise and competitive assets, this new entity will play a crucial role in securing the UK’s energy supply.”
Zoë Yujnovich,Shell plc’s Integrated Gas and Upstream Director, said: “Domestically produced oil and gas is expected to have a significant role to play in the future of the UK’s energy system.
“To achieve this in an already mature basin, we are combining forces with Equinor, a partner of many years.
“The new venture will help play a critical role in a balanced energy transition providing the heat for millions of UK homes, the power for industry and the secure supply of fuels people rely on.”
This collaboration aims to ensure a sustainable future for the UK Continental Shelf, supporting the nation’s energy security and transition goals.
