Shell, Equinor to merge UK offshore oil, gas operations
Shell and Norway's Equinor have announced plans to combine their British offshore oil and gas assets into a joint venture.The new company, based in Aberdeen, Scotland, aims to maintain fossil fuel production while also ensuring energy security in the United Kingdom.
The transaction is expected to be completed by the end of next year, pending approval, according to CNBC.
Shell stated that once completed, the new company will be the largest independent producer in the United Kingdom's North Sea.
The company expects to produce more than 140,000 barrels of oil equivalent per day by 2025.
Shell's stock fell 0.8% on Thursday morning, while Equinor's stock rose 0.3%.
Shell's integrated gas and upstream director, Zoë Yujnovich, stated that domestically produced oil and gas will play a significant role in the future of the UK's energy system.
"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," Yujnovich told reporters.
Equinor's equity stakes in Mariner, Rosebank, and Buzzard will be combined with Shell's ownership of Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion.
Equinor currently employs around 300 people in the United Kingdom, while Shell employs approximately 1,000 people in oil and gas roles throughout the country.
"This transaction strengthens Equinor's near-term cash flow, and by combining Equinor's and Shell's long-standing expertise and competitive assets, this new entity will play a crucial role in securing the UK's energy supply," said Philippe Mathieu, Equinor's executive vice president for exploration and production international.
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