Shell, Equinor combining UK offshore assets

The Equinor Mariner field in the UK North Sea. Equinor UK and Shell UK are combining their assets in the UK North Sea. (Image: Equinor UK)

Equinor UK and Shell U.K. are combining their UK offshore oil and gas assets and expertise to form a new company which will be the UK North Sea’s biggest independent producer. The incorporated joint venture (IJV) will be set up to sustain domestic oil and gas production and security of energy supply in the UK.

On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%). With the once prolific basin now maturing and production naturally declining, the combination of portfolios and expertise will allow continued economic recovery of this vital UK resource.

The new company will invest to provide a long-term sustainable future for individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the UK. Based in Aberdeen, the joint venture will include Equinor’s equity interests in Mariner, Rosebank and Buzzard; and Shell’s equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. A range of exploration licenses will also be part of the transaction.

“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 plc’s Integrated Gas and Upstream Director Zoë Yujnovich. “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.”

Completion of the transaction remains subject to approvals and is expected by the end of 2025.