Shell and Equinor Announce New Joint Venture to Form UK North Sea's Largest Independent Producer

Shell and Equinor combine assets to establish the UK North Sea’s largest independent oil and gas producer Image Credit : Bloomberg

Shell UK Limited, a subsidiary of Shell plc, and Equinor UK Ltd, a subsidiary of Equinor ASA, have agreed to combine their UK offshore oil and gas assets and expertise to create a new company. The cooperation boosts UK oil and gas production, strengthens energy security, and establishes the North Sea’s largest independent producer.

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Joint Ownership and Asset Integration

Equinor and Shell will each own 50% of the new independent company. Both companies have decades of experience in the UK North Sea, a once prolific basin that is now maturing. Equinor and Shell combine portfolios to sustain the economic recovery of the UK North Sea resource, despite declining production.

The partnership enhances agility, reduces costs, and positions the company to optimize asset value on the UK Continental Shelf. The joint venture invests in extending oil and gas field lifespans, ensuring sustainability and supporting the sector's long-term viability.

The joint venture will include Equinor’s stakes in Mariner, Rosebank, and Buzzard, as well as Shell’s stakes in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion. The transaction will include a range of exploration licenses. The new company will establish its headquarters in Aberdeen, a key UK energy sector hub.

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Philippe Mathieu, Equinor’s Executive Vice President for Exploration and Production International, said, "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."

He added, "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.”

Equinor and Shell will collaborate on North Sea development, shifting from independent operations to joint investment, strengthening energy transition roles.