Equinor UK Ltd and Shell UK Ltd will merge their UK offshore oil and gas assets to create the UK North Sea’s largest independent producer. The joint venture, equally owned by both companies, will focus on sustaining domestic production and ensuring energy security in the UK.
The new company, based in Aberdeen, will include Equinor’s stakes in Mariner, Rosebank, and Buzzard, alongside Shell’s interests in fields such as Shearwater, Penguins, and Clair. Exploration licenses will also be part of the transaction. Combined, these assets are projected to produce over 140,000 barrels of oil equivalent per day by 2025.
Equinor’s Executive Vice President, Philippe Mathieu, stated: “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’s Integrated Gas and Upstream Director, added: “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.”
The joint venture will be self-funded and aims to extend the life of key fields and platforms, contributing to the long-term stability of the North Sea sector. The deal, effective from January 1, 2025, is expected to close by the end of that year, pending approvals.
Shell and Equinor will retain ownership of key assets outside the joint venture, including Shell’s floating wind projects and Equinor’s offshore wind portfolio.
This collaboration marks a new chapter for both companies as they adapt to the maturing North Sea while supporting the UK’s energy transition.