Equinor and Shell Unite to Secure UK Energy Future with Largest Independent North Sea Producer

Equinor and Shell Unite to Secure UK Energy Future with Largest Independent North Sea Producer

(IN BRIEF) Equinor UK and Shell UK are joining forces to create the largest independent energy producer in the UK North Sea, combining their offshore oil and gas portfolios into a new joint venture. The company, equally owned by both firms, aims to sustain domestic energy production, ensure the UK’s energy security, and extend the life of existing assets in the maturing basin. Headquartered in Aberdeen, it will manage key assets such as Equinor’s Mariner and Shell’s Shearwater fields, with projected production exceeding 140,000 barrels of oil equivalent per day by 2025. This venture also supports the UK’s energy transition, leveraging shared expertise to optimize resources and reduce risks. The transaction is expected to be completed by the end of 2025, pending regulatory approval.

(PRESS RELEASE) STAVANGER, 5-Dec-2024 — /EuropaWire/ — Equinor UK Ltd, a subsidiary of Equinor ASA, and Shell UK Limited, a subsidiary of Shell plc, have announced a landmark partnership to combine their UK offshore oil and gas portfolios, forming the largest independent producer in the UK North Sea. This strategic joint venture aims to enhance domestic energy production and ensure the UK’s energy security while maximizing the potential of its maturing offshore resources.

A New Energy Leader in the UK North Sea

The incorporated joint venture (IJV) will be equally owned by Equinor and Shell, two global energy giants with a combined legacy of over four decades operating in the region. By integrating their expertise and assets, the new company will take a more focused, cost-effective, and agile approach to managing operations on the UK Continental Shelf. Its primary mission will be to extend the life of vital oil and gas fields, contributing to the UK’s economy and energy stability.

Headquartered in Aberdeen, the joint venture will oversee key assets from both companies, including Equinor’s interests in Mariner, Rosebank, and Buzzard, and Shell’s stakes in Shearwater, Penguins, and Jackdaw, among others. Several exploration licenses will also be included in the transaction, further strengthening the portfolio.

Investing in Long-Term Energy Security

The newly formed company is committed to providing a sustainable future for the UK oil and gas sector. By focusing on existing fields, platforms, and infrastructure, the company aims to prolong the productive life of these assets, ensuring a steady energy supply for UK homes and industries.

This joint venture also positions Equinor and Shell as leading partners in the energy transition. By sharing resources and expertise, the companies will continue to play a significant role in supporting a balanced and sustainable energy system.

Leadership Perspectives

Philippe Mathieu, Equinor’s Executive Vice President for Exploration and Production International, highlighted the importance of this partnership:
“For over 40 years, Equinor has been a reliable energy partner to the UK, advancing oil, gas, offshore wind, and decarbonization. This new entity combines Equinor and Shell’s assets and expertise, strengthening near-term cash flow and securing energy supply for the UK.”

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, added:
“Domestically produced oil and gas are critical to the UK’s energy future. This joint venture with Equinor reflects our commitment to ensuring a secure, balanced energy transition while continuing to heat homes and power industries.”

Key Details and Timeline

• The transaction will have economic effect starting January 1, 2025, with completion expected by the end of that year, subject to regulatory approvals.
• The new company is projected to produce over 140,000 barrels of oil equivalent per day in 2025, surpassing the combined current production of Equinor (38,000 barrels/day) and Shell UK (over 100,000 barrels/day).
• Equinor and Shell will retain ownership of select assets, including Equinor’s offshore wind projects and Shell’s Fife NGL plant and floating wind initiatives.

Broader Impact on the UK Energy Sector

The joint venture underscores Equinor and Shell’s continued commitment to the UK’s energy industry, both as producers and key partners in the nation’s energy transition. By consolidating resources and expertise, the companies aim to address the challenges of a maturing basin while supporting long-term energy resilience and sustainability.

This collaboration represents a significant step in maintaining the UK North Sea’s role as a vital energy resource while adapting to the changing needs of the energy landscape. Completion of the transaction will mark the beginning of a new chapter for Equinor, Shell, and the broader UK energy sector.

Notes to Editors

• In the UK, Equinor currently produces approx. 38,000 barrels of oil equivalent per day; Shell UK produces over 100,000 barrels of oil equivalent per day. The new company is expected to produce over 140,000 barrels of oil equivalent per day in 2025.
• Equinor will retain ownership of its cross-border assets, Utgard, Barnacle and Statfjord and offshore wind portfolio including Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank. It will also retain the hydrogen, carbon capture and storage, power generation, battery storage and gas storage assets.
• Shell UK will retain ownership of its interests in the Fife NGL plant, St Fergus Gas Terminal and floating wind projects under development – MarramWind and CampionWind. Shell UK will also remain Technical Developer of Acorn, Scotland’s largest carbon capture and storage project.
• Equinor employs around 300 people in oil and gas roles in the UK, while Shell employs approximately 1,000 in similar oil and gas positions across the country.

Media Contacts:

Investor Relation:
Bård Glad Pedersen
senior vice president Investor Relations,
+47 918 01 791

Media Relation:
Ola Morten Aanestad
Media Relations,
+47 480 80 212

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

SOURCE: Equinor ASA