Fri Dec 13 01:06:26 UTC 2024: ## UK North Sea’s Biggest Independent Oil & Gas Producer Created by Equinor and Shell Joint Venture
**Aberdeen, UK –** Energy giants Equinor and Shell are joining forces to create the UK North Sea’s largest independent oil and gas producer. The 50/50 joint venture, announced today, will combine both companies’ UK offshore assets and expertise to ensure continued domestic energy supply and extend the life of the maturing North Sea basin.
The new company, based in Aberdeen, will encompass a significant portfolio of oil and gas fields, including Equinor’s interests in Mariner, Rosebank, and Buzzard, and Shell’s interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion, along with several exploration licenses. The merger aims to create a more agile and cost-competitive entity capable of maximizing the value of these combined assets.
This move is strategically important for the UK, as domestic production naturally declines in the mature North Sea basin. The joint venture will invest in maintaining and extending the life of existing fields and platforms, securing a long-term future for the sector.
Both Equinor and Shell emphasized their commitment to the UK energy sector, highlighting the new venture’s role in a balanced energy transition while providing essential energy resources for UK homes and industries. The transaction is expected to be completed by the end of 2025, subject to regulatory approvals, with an effective date of January 1, 2025. The new company will be self-funded, with Equinor’s stake equity-accounted and no organic capital expenditures reported by Equinor. This structure, according to Equinor, strengthens near-term cash flow and reduces risk exposure.
The announcement comes alongside other news from Equinor regarding the financial close on two UK carbon capture and storage projects and the expected January/February 2025 start-up of the Johan Castberg field.
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