Shell, Equinor JV to create UK’s largest independent oil and gas producer

Shell U.K. Limited and Equinor UK Ltd have announced a partnership to combine their UK offshore oil and gas assets into a newly incorporated joint venture (IJV). The new entity, equally owned by Shell and Equinor, will become the UK’s largest independent oil and gas producer, with operations centred on maximising the value of the UK Continental Shelf (UKCS).

With production in the North Sea basin naturally declining, this collaboration is seen as a strategic move to sustain domestic oil and gas production while enhancing energy security for the UK. The joint venture will be headquartered in Aberdeen, the nation’s energy hub, and will encompass Equinor’s stakes in Mariner, Rosebank, and Buzzard, alongside Shell’s interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion.

The combined portfolio aims to produce more than 140,000 barrels of oil equivalent per day by 2025, with plans to invest in sustaining and extending the operational life of individual fields and platforms. Both companies emphasised the importance of continuing to contribute to the UK’s energy supply during the transition to a balanced energy future.

Philippe Mathieu, Equinor’s executive vice president for Exploration and Production International, remarked, “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.”

Zoë Yujnovich, Shell’s Integrated Gas and Upstream director, highlighted the collaboration’s significance: “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.”

While Equinor and Shell will remain significant players in their own right, each will retain specific assets outside the joint venture. Equinor will keep its cross-border oil fields, offshore wind farms, and hydrogen and carbon capture projects. Similarly, Shell will retain its gas terminals, floating wind projects, and its role in Scotland’s largest carbon capture initiative, Acorn.

The transaction, subject to regulatory approvals, is expected to be finalised by the end of 2025.