Shell and Equinor Join Forces to Create UK North Sea’s Largest Independent Oil Producer

Units of Equinor and Shell have announced plans to merge their UK offshore oil and gas operations, creating the largest independent producer in the UK North Sea.

The 50-50 joint venture aims to bolster domestic energy security and maintain vital production in the maturing North Sea basin. The combined entity, which will be based in Aberdeen, is projected to achieve production of over 140,000 barrels of oil equivalent per day in 2025, marking a substantial increase from their current individual outputs.

The deal encompasses several major assets, including Equinor’s interests in Mariner, Rosebank, and Buzzard fields, alongside Shell’s stakes in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion.

“Equinor has been a reliable energy partner to the UK for over 40 years,” said Philippe Mathieu, Equinor’s Executive Vice President for Exploration and Production International. “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”.

“Domestically produced oil and gas is expected to have a significant role to play in the future of the UK’s energy system,” said Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich. “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.”

The transaction, scheduled to take economic effect from January 1, 2025, is expected to complete by the end of next year, subject to regulatory approvals. Both companies will maintain their individual interests in renewable energy and carbon capture projects, with Equinor retaining its offshore wind portfolio and Shell continuing its development of floating wind projects.

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