Shell and Equinor Form UK North Sea Oil & Gas Joint Venture

To?establish a jointly owned energy business, oil giant Shell Energy and Norway's Equinor revealed intentions to merge their British offshore oil and gas holdings. To maintain fossil fuel production and the stability of the UK's energy supply, a joint venture will be formed in Aberdeen, Scotland. Subject to clearances, the firms want to finalize the agreement by the end of next year. According to Shell, the incorporated business will thereafter be the biggest independent producer in the North Sea of the United Kingdom. In 2025, the firm is anticipated to produce over 140,000 barrels of oil equivalent per day.

"The UK's energy system is anticipated to rely heavily on domestically produced gas and oil in the future," said Shell's integrated gas and upstream director Zo? Yujnovich in a statement. Yujnovich added, "The new venture will help play a critical role in a balanced energy transition, providing the power for industry, the heat for millions of UK homes, and the secure supply of fuels people rely on."

Shell's stakes in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion, as well as Equinor's ownership interests in Mariner, Rosebank, and Buzzard, will be included in the 50/50 joint venture. Equinor, a company based in Norway, now employs about 300 people in the United Kingdom, whereas Shell employs over 1,000 workers nationally in oil and gas professions.

"We truly believe that by combining our portfolios, they will be much stronger, which is why we are doing this, to create this company 50-50 with Shell and Equinor," said Camilla Salthe, senior vice president of UK head of upstream at Equinor.

"Additionally, by creating new methods of operation, we may create work procedures that will significantly increase margins and enable us to create long-term value from these assets. Thus, it is the main commercial justification for taking this action," Salthe stated.