Equinor, Shell to merge UK North Sea assets

LONDON, December 6, 2024 – Equinor UK Ltd and Shell UK Limited will combine their UK offshore oil and gas assets to form a joint venture that is set to be the UK North Sea’s largest independent producer, both majors announced on Thursday.

The new company will be 50-50 owned by Equinor and Shell and headquartered in Aberdeen, Scotland. It will include Equinor’s equity interests in the Mariner, Rosebank and Buzzard oil and gasfields, 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. The combination of the portfolios will allow the companies to pool their resources and expertise and is expected to yield cost savings that will boost the profitability of ageing assets.

“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,” said Philippe Mathieu, Equinor’s executive vice-president for international exploration and production.

“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,” added Zoë Yujnovich, Shell’s integrated gas and upstream director.

Completion of the transaction remains subject to approvals and is expected by the end of 2025. The new company will be self-funded, and based on current output figures, is expected to produce more than 140,000 boepd starting in 2025.

Equinor will retain ownership of its cross-border assets and its offshore wind portfolio, as well as its hydrogen, CCS, power generation, battery storage and gas storage assets. Shell will keep its interests in the Fife NGL plant, the St Fergus Gas Terminal and its floating wind projects under development.