Shell, Equinor to form UK oil & gas joint venture

(Sharecast News) - Energy giants Equinor and Shell on Thursday said they were combining their British offshore oil and gas assets to create what they said would be the UK North Sea's biggest independent oil and gas producer.

The Norwegian and UK firms will each own 50% of the new joint venture, which will "sustain domestic oil and gas production and security of energy supply in the UK" they said in a statement.

Equinor said the new company was expected to produce more than 140,000 barrels of oil equivalent per day in 2025. In the UK, the Norwegian operator currently produces around 38,000 barrels and Shell 100,000.

The company will be based in Aberdeen, Scotland and will include Equinor's stakes in the Mariner, Rosebank and Buzzard fields, and Shell's holdings in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion, the Norwegian group said.

"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 duo said.

A range of exploration licenses will also be part of the transaction, which they hope to complete by the end of next year.

Equinor will retain ownership of its cross-border assets, Utgard, Barnacle and Statfjord and offshore wind portfolio including Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank. It will also retain hydrogen, carbon capture and storage, power generation, battery storage and gas storage assets.

Shell will retain ownership of its interests in the Fife NGL plant, St Fergus Gas Terminal and floating wind projects under development - MarramWind and CampionWind. It will also remain Technical Developer of Acorn, Scotland's largest carbon capture and storage project.

Equinor employs around 300 people in oil and gas roles in the UK, while Shell employs approximately 1,000 in similar positions across the country.

Reporting by Frank Prenesti for Sharecast.com