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Equinor, Shell Combining Offshore Assets To Create UK’s Largest Independent Oil and Gas Producer
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class="ArticlePage-main-content"> <article class="ArticlePage-mainContent"> <div class="ArticlePage-breadcrumbs"><a class="Link" href="https://jpt.spe.org/topic/business-economics" data-cms-ai="0" >Business/economics</a></div> <h1 class="ArticlePage-headline"> Equinor, Shell Combining Offshore Assets To Create UK’s Largest Independent Oil and Gas Producer </h1> <h2 class="ArticlePage-subHeadline">A new UK-based operating company is set to launch next year with a production profile of nearly 140,000 BOE/D.</h2> <div class="ArticlePage-contentInfo"> <div class="ArticlePage-byline"> <div class="ArticlePage-byline-wrapper"><div class="ArticlePage-datePublished"> December 5, 2024 </div> <meta content="2024-12-05T19:17:03.814Z"> <div class="ArticlePage-authors"><div class="ArticlePage-authorName"> <span class="ArticlePage-authorBy">By </span><a aria-label="Trent Jacobs" href="https://jpt.spe.org/author/trent-jacobs" data-cms-ai="0"><span>Trent Jacobs</span></a></div></div> </div> <div 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data-image-size=articleImage /> <div class="Figure-content"><figcaption class="Figure-caption">The Shearwater platform in the UK continental shelf. </figcaption><div class="Figure-credit">Source: Shell</div></div> </figure> </div> <div class="ArticlePage-articleContainer "> <div class="ArticlePage-articleBody "> <div class="RichTextArticleBody"> <div class="RichTextArticleBody-body RichTextBody"><p>Equinor and Shell have announced plans to establish a joint venture to "sustain domestic oil and gas production and security of energy supply in the UK."</p><p>In separate releases, the companies said the new operating entity, which has yet to be named, will become the UK's largest independent oil and gas producer. The venture will be owned equally by Equinor and Shell and will consolidate their UK Continental Shelf (UKCS) assets to enhance cost efficiencies.</p><p>The Aberdeen-based joint venture will assume ownership of Equinor's equity stakes in the Mariner, Rosebank, and Buzzard fields, alongside Shell’s interests in the Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion fields.</p><p>“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,” said Zoë Yujnovich, the integrated gas and upstream director for Shell.</p><p>Philippe Mathieu, Equinor’s executive vice president for international exploration and production, added that the deal will improve 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.”</p><p>Certain projects are excluded from the deal. Equinor will retain its cross-border assets, as well as its offshore wind, hydrogen, and carbon storage projects in the UK. Shell will continue to own its onshore gas facilities and its wind and carbon storage businesses. Exploration licenses currently held by both companies will transfer to the joint venture upon deal completion.</p><p>Moving forward, Equinor and Shell said they will continue their involvement in the UKCS through nonoperating investments rather than as individual operators. Equinor described this transition in its announcement as a “new chapter” for both companies, emphasizing their commitment to remaining key players in the UK market.</p><p>Pending regulatory approvals, the new operating company is expected to be established by the end of next year. Once operational, the financial terms of the deal will be retroactive to an effective date of 1 January 2025.</p></div> </div> </div> </div> </article> <div class="ArticlePage-tags-container"> <div class="ArticlePage-tags topicsTags"> <h2 class="ArticlePage-tags-heading">Topics</h2> <div class="ArticlePage-tags-list"><a class="Link" href="https://jpt.spe.org/topic/business-economics" data-cms-ai="0" >Business/economics</a><a class="Link" href="https://jpt.spe.org/topic/onshore-offshore-facilities" data-cms-ai="0" >Onshore/Offshore Facilities</a></div> </div> <div class="ArticlePage-tags"> <h2 class="ArticlePage-tags-heading">Tags</h2> <div class="ArticlePage-tags-list"> <a class="Link" href="https://jpt.spe.org/tag/shell" data-cms-ai="0" >Shell</a>, <a class="Link" href="https://jpt.spe.org/tag/equinor" data-cms-ai="0" >Equinor</a>, <a class="Link" href="https://jpt.spe.org/tag/uk-continental-shelf" data-cms-ai="0" >UK Continental Shelf</a>, <a class="Link" href="https://jpt.spe.org/tag/mergers-and-acquisitions" data-cms-ai="0" >mergers and acquisitions</a> </div> </div> </div> <div class="ArticlePage-authorInfo"> <div class="ArticlePage-authorInfo-image"> <a aria-label="Trent Jacobs" href="https://jpt.spe.org/author/trent-jacobs" data-cms-ai="0"> <img alt="" src="https://assets.spe.org/dims4/default/d5563d4/2147483647/strip/true/crop/562x562+38+0/resize/100x100!/quality/90/?url=http%3A%2F%2Fspe-brightspot.s3.us-east-2.amazonaws.com%2Fd1%2F0e%2F204f91bd426d80b019c074bd97d2%2Ftrent-jacobs-2024-cropped.jpg" width="100" height="100"> </a> </div> <div class="ArticlePage-authorInfo-bio"> <div class="ArticlePage-authorInfo-bio-name"> <a href="https://jpt.spe.org/author/trent-jacobs" aria-label="" data-cms-ai="0">Trent Jacobs</a> </div> <div class="ArticlePage-authorInfo-bio-content"> Trent Jacobs has been a journalist and communications specialist for 15 years, most of which have been spent covering the upstream oil and gas industry. He reports from his hometown of Houston and highlights new trends from the SPE’s largest technical conferences in North America, Europe, Middle East, and Asia. Areas of special focus include emerging technologies, advancements in reservoir engineering, and the energy transition. He can be reached at tjacobs@spe.org. <div class="ArticlePage-authorInfo-bio-link"> <a class="Link" aria-label="Trent Jacobs" href="https://jpt.spe.org/author/trent-jacobs" data-cms-ai="0">See More Stories by Trent Jacobs</a> </div> </div> </div> </div> </div> </main> <aside class="ArticlePage-aside"> <aside class="ArticlePage-aside-content"> <div class="ListC" data-hide-descriptions="true"> <div class="ListC-header" > <div class="ListC-header-title"> <span class="Link">Related Content</span> </div> </div> <ul class="ListC-items"> <li class="ListC-items-item"> <div class="PromoA"data-content-type="article" data-image-align="left" > <div class="PromoA-media"> <a class="Link" aria-label="Shell OKs Development of Bonga North Offshore Nigeria" href="https://jpt.spe.org/shell-oks-development-of-bonga-north-offshore-nigeria" data-cms-ai="0" > <img class="Image" alt="otc-35112-Bonga-North.png" width="180" height="120" 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