Shell PLC (LSE:SHEL, NYSE:SHEL) and Equinor have struck a deal to combine their respective UK North Sea assets into a new company, which will become Britain’s largest independent oil company.
The joint venture company, to be based in Aberdeen, will own Equinor’s Mariner, Rosebank, and Buzzard fields, alongside Shell’s Shearwater and Penguins operations as well as a portfolio of exploration and development assets.
Production will exceed 140,000 barrels of oil equivalent per day in 2025.
“Domestically produced oil and gas is expected to have a significant role to play in the future of the UK’s energy system,” said Zoë Yujnovich, Shell’s integrated gas and upstream director.
“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.”
Equinor executive vice president Philippe Mathieu, meanwhile, added: “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.”
The new venture has an economic effective date of 1 January 2025.