In December 2024, Equinor UK and Shell U.K.announced plans to combine their UK offshore oil and gas assets and expertise to form a new company which will be the UK North Sea’s biggest independent producer. The incorporated joint venture (IJV) will be set up to sustain domestic oil and gas production and security of energy supply in the UK. 

On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%), two leading global energy companies with decades of experience operating in the UK North Sea. 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.

The new company will invest to provide a long-term sustainable future for 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 licences will also be part of the transaction.

Both Shell and Equinor are proud to continue the development of the North Sea as investing partners rather than individual operators, opening a new chapter in which they will remain significant players in the UK energy sector.

Simon Roddy, Senior Vice President Upstream at Shell UK, has provided an update on the proposed IJV:
"In December we announced our plans to create a new incorporated joint venture with Equinor. Since then I’m often asked – how are things going on the new IJV?

So, it’s with great pleasure to share that, subject to deal completion, we have selected the Silver Fin building in Aberdeen city centre as the future headquarters for the IJV. This is our first visible milestone and it’s exciting to see the details start to come to life.

From experience, I can say that Silver Fin is an excellent location offering many positives for the future company. And we know that bringing the future organisation together in one location will be vital to enabling collaboration, connection and flexibility as the foundations of a shared culture and way of working.

Many of the staff who will be part of the new company are based already in Silver Fin. Others will transition to the building in line with completion of the deal (anticipated by end 2025) and operational needs.

We look forward to sharing more updates as we continue our progress."

Key facts

• 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 IJV 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.

KeyFacts Energy: Shell UK country profile   l   Equinor UK country profile