Equinor UK, a subsidiary of Norwegian energy giant, Equinor ASA and Shell UK, a subsidiary of Shell plc, are to combine their UK offshore oil and gas assets to form a new UK company.
Once formed, this will be the UK North Sea’s biggest independent producer.
The incorporated joint venture (IJV) will be set up on a 50:50 basis to sustain domestic oil and gas production and security of energy supply in the UK, Shell 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, Shell added.
To be based in Aberdeen, the new company will be more agile, focused, cost-competitive, and strategically well positioned to maximise the value of its combined portfolios on the UK Continental Shelf.
A range of exploration licences will also form part of the deal.
