5th Dec 2024 08:08
(Alliance News) - Shell PLC and Equinor ASA on Thursday said they planned to combine their UK North Sea assets to create the country's largest independent oil and gas company, based in Aberdeen in Scotland.
The London-based oil major and its Stavanger, Norway-based peer aim to combine their UK offshore oil and gas assets to form a new company, that will be the UK North Sea's biggest independent energy producer.
"The new company will invest to provide a long-term future for the individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the UK. Based in Aberdeen, the heart of the nation's energy sector, the joint venture will include Equinor's equity interests in Mariner, Rosebank and Buzzard, and Shell’s equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. A range of exploration licenses will also be part of the transaction," Shell and Equinor said.
The deal is expected to be completed by the end of 2025, subject to approvals. It will have economic effect from January 1, 2025.
On deal completion, the new independent producer will be jointly owned by Shell and Equinor, with both companies holding equal 50% stake.
"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. 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," Shell and Equinor said.
Shell's Integrated Gas & Upstream Director Zoe Yujnovich said: "Domestically produced oil and gas is expected to have a significant role to play in the future of the UK's energy system. To achieve this in an already mature basin, we are combining forces with Equinor, a partner of many years. 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."
Shell shares were down 0.6% at 2,516.50 pence each on Wednesday in London early Thursday. Equinor was up 0.2% to EUR22.94 in Frankfurt.
By Tom Budszus, Alliance News slot editor
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