Equinor and Shell to Create UK’s Largest Independent Offshore Oil and Gas Producer

Shell U.K. Limited and Equinor UK Ltd are combining their UK offshore oil and gas assets to form a new joint venture, which will become the largest independent producer in the UK North Sea.

The new company will be equally owned by Equinor and Shell (50% each) and aims to sustain the UK’s domestic oil and gas production while ensuring long-term energy security.

The joint venture will bring together Equinor’s assets in Mariner, Rosebank, and Buzzard, along with Shell’s interests in Shearwater, Penguins, Clair, and other key fields. This partnership comes at a time when the UK North Sea basin is maturing, and production is declining. By combining their portfolios and expertise, the two companies aim to enhance the efficiency and longevity of these vital resources.

The new company, based in Aberdeen, will focus on extending the life of existing fields and platforms, ensuring a sustainable future for the UK’s oil and gas sector. The transaction also includes various exploration licenses to further secure energy production for the UK.

Philippe Mathieu, Equinor’s EVP for Exploration and Production International, highlighted that this partnership strengthens Equinor’s cash flow while enhancing energy security. Shell’s Director of Integrated Gas and Upstream, Zoë Yujnovich, emphasized that the venture will support the UK’s energy transition by securing a reliable supply of domestically produced oil and gas for homes and industries.

Completion of the transaction is expected by the end of 2025, pending regulatory approvals.