Shell and Equinor have announced a groundbreaking partnership to merge their oil and gas assets in the North Sea, creating the largest oil and gas producer in the region. The move, which is still subject to regulatory approval, signals a significant shift in the UK offshore energy sector. The new company will be headquartered in Aberdeen, reflecting its strategic importance to the UK’s energy infrastructure.
The collaboration will pool major assets from both energy giants. Equinor will contribute its stakes in the Mariner, Rosebank, and Buzzard fields, while Shell will add its interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion. The venture will also include several exploration licenses.
The new company will be structured as a 50-50 joint venture, combining the operational and technical strengths of both Shell and Equinor. Employees currently working on these North Sea projects will transition to the new entity, with Shell confirming that no job losses will occur. Together, the firms currently employ approximately 1,300 people in UK oil and gas roles.
The joint venture aims to bolster the long-term viability of UK oil and gas operations. Shell and Equinor highlighted the potential for "enhanced career longevity" for employees, as well as greater opportunities within a diversified portfolio.
Equinor’s executive vice president, Philippe Mathieu, emphasized the strategic role the partnership would play in securing the UK’s energy supply. “This new entity will play a crucial role in ensuring reliable energy while advancing the region’s transition to cleaner energy solutions,” he said.
Zoe Yujnovich, Shell’s director of integrated gas and upstream, echoed the optimism, stating that the merger would "support a growing and more prosperous North Sea sector" despite declining output and increasing extraction costs.
The new venture is expected to provide greater operational efficiencies and help both firms adapt to the evolving challenges of the global energy market. The transaction also marks another step in their long-standing commitment to the North Sea, which has been a cornerstone of the UK’s energy strategy for decades.
