Shell and Equinor to create UK’s largest independent oil and gas company

Equinor UK Ltd and Shell UK Ltd will combine their UK offshore oil and gas assets and expertise to form a new company that will be the largest independent producer in the UK North Sea. The purpose of the joint venture (IJV) is to maintain UK domestic oil and gas production and energy supply security.

Upon completion of the transaction, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%). As once-prolific basins now mature and production naturally declines, the combination of portfolios and expertise will enable the continued economic recovery of this important UK resource. The new company will be more agile, focused, cost-competitive and strategically well-positioned to maximize the value of its combined portfolio on the UK Continental Shelf.

The new company will invest to provide a long-term sustainable future for individual oil and gas fields and platforms, helping to extend the life of this critical industry for the benefit of the UK. The JV, based in Aberdeen, Scotland, the heart of the UK energy industry, will include Equinor’s interests in Mariner, Rosebank and Buzzard; and Shell’s interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. A range of exploration licences will also be part of the transaction.

Both Shell and Equinor are proud to continue developing the North Sea as investment partners rather than sole operators, and to begin a new chapter in which they will continue to be key players in the UK energy sector.

Philippe Mathieu, Equinor’s Executive Vice President of International Exploration and Production, said: “For more than 40 years, Equinor has been a reliable energy partner to the UK, supplying oil and gas, developing the offshore wind industry and advancing decarbonization. This transaction strengthens Equinor’s near-term cash flow and, by combining the long-standing expertise and competitive assets of Equinor and Shell, the new entity will play a key role in securing the UK’s energy supply.”

Zoë Yujnovich, Shell’s Director of Integrated Gas and Upstream, commented: “Domestic oil and gas are expected to play a major role in the future UK energy system. To achieve this in an already mature basin, we are joining forces with Equinor, our long-time partner. The new joint venture will play a key role in balancing the energy transition, heating millions of UK homes, powering industry and providing a secure fuel supply for people.”

Closing of the transaction remains subject to approvals and is expected to be completed by the end of 2025.