International Company News

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

Equinor UK Ltd, a subsidiary of Equinor ASA and Shell UK Limited, a subsidiary of Shell plc are to combine their UK offshore oil & gas assets and expertise to form a new company which will be the UK North Sea’s biggest independent producer.

Press Office
11/12/2024 01:00
Equinor and Shell to create the UK’s largest independent oil and gas company Imagem: Jamie Baikie/Equinor Visualizações: 908 (0) (0) (0) (0)

The incorporated joint venture (IJV) will be set up to sustain domestic oil and gas production and security of energy supply in the UK.

On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%), two leading global energy companies with decades of experience operating in the UK North Sea. With the once prolific basin now maturing and production naturally declining, the combination of portfolios and expertise will allow continued economic recovery of this vital UK resource. The new company will be more agile, focused, cost-competitive and strategically well positioned to maximise the value of its combined portfolios on the UK Continental Shelf.

The new company will invest to provide a long-term future for the individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the UK. Based in Aberdeen, the heart of the nation’s energy sector, the joint venture will include Equinor’s equity interests in Mariner, Rosebank and Buzzard, 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.

Both Equinor and Shell are proud to continue the development of the North Sea as investing partners rather than individual operators, opening a new chapter in which they will remain significant players in the UK energy sector.

Following completion, the new company will be self-funded, Equinor’s ownership stake will be equity accounted, and no organic capital expenditures related to this investment will be reported by Equinor. This transaction enables Equinor to benefit from increased short-term production and cash flow. The more balanced ownership structure of the assets also contributes to reduced overall risk exposure.

Philippe Mathieu - portrait

Equinor’s Executive Vice President for Exploration and Production International, Philippe Mathieu (photo by Ole Jørgen Bratland), 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. 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.”

Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, commented: “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 transaction has economic effect on 1st January 2025. Completion of the transaction remains subject to approvals and is expected by the end of 2025.

Most Read Today
see see
Results
Sergipe Maintains 1st Place in the Free Gas Market Ranking
10/02/25
International Company News
Interocean awarded Morgan, Mona, and Morven Offshore Win...
06/02/25
Natural Gas
ANP approves prior consultation aiming at new regulation...
06/02/25
Permanent Offer
Permanent Sharing Offer (OPP): ANP approves update of th...
06/02/25
Paraná
Renewable energy with savings of up to 35% drives the ex...
06/02/25
Pre-Salt
PPSA launches a new spot sale process for Union oil carg...
06/02/25
RD&I
Research Discovers Enzyme That Converts Corn Ethanol Dis...
06/02/25
Results
Petrobras reaches 2024 annual production target
28/01/25
International Company News
Pipetech Launches Game-Changing Downhole Scale Remediati...
28/01/25
Geology
Investments totaling R$ 271 million are boosting researc...
28/01/25
RD&I
Miniaturized devices are poised to transform oil extract...
28/01/25
Electricity
With 102,924 MW, the instantaneous energy demand in the ...
27/01/25
Divestment
Petrobras begins the Binding Phase of the Tartaruga Fiel...
27/01/25
Licensing
API Launches Repair and Remanufacture Licensing Program
23/01/25
Santos Basin
Petrobras announces extension of FPSO Cidade de Angra do...
22/01/25
Contracts
Tracerco announces huge contract wins – including the co...
22/01/25
Petrobras
With nearly 2.5 million liters of gasoline and 455 milli...
22/01/25
Petrobras
Bunker Production Hits Record at RNEST
21/01/25
Refining
Revap Breaks Historical Records in 2024 for Asphalt and ...
21/01/25
International Company News
DeepOcean's subsea services offering reinforced by vesse...
21/01/25
Natural Gas
Compagas has an investment plan of R$ 505 million to dou...
21/01/25
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.