Shell: combination of UK assets with Equinor

(CercleFinance.com) - Norwegian oil company Equinor and Anglo-Dutch oil giant Shell announced on Thursday that they are to merge their UK offshore oil and gas activities, which will be combined in an independent company.


The new joint venture, which will be equally owned by the two groups, is expected to produce over 140,000 barrels of oil equivalent per day from the combined fields, all of which are located in the UK North Sea.

These are the Mariner, Rosebank and Buzzard projects for Equinor, and the Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion blocks for Shell.

The scope is also to include several ongoing exploration licenses.

The new entity will be more flexible, more focused, more cost-competitive and better positioned strategically, with the objective of maximizing the value of this combined portfolio on the UK Continental Shelf, they explain.

In a press release, Equinor says it employs around 300 people in its UK oil and gas activities, while Shell's workforce in the same field is in the region of 1,000.

The deal is expected to be finalised by the end of 2025.

These announcements had little effect on the stock market on Thursday morning, with Equinor shares losing 0.3% in Oslo, while Shell shares were down around 1% in London.


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