British energy giant Shell and Norway’s Equinor announced plans Thursday to merge their UK offshore oil and gas assets to create a new jointly owned company.
Based in Aberdeen, Scotland, the joint venture “will be the UK North Sea’s biggest independent producer”, the companies said in a statement.
The company “will be set up to sustain domestic oil and gas production and security of energy supply in the UK”, the statement said.
The joint venture is expected to produce more than 140,000 barrels of oil equivalent per day in 2025.
Equinor and Shell will each hold a 50 percent stake in the new company.
Shell employs around 1,000 people in oil and gas positions in the UK compared to 300 for Equinor.
“Domestically produced oil and gas is expected to have a significant role to play in the future of the UK’s energy system,” said Zoe Yujnovich, Shell’s integrated gas and upstream director.
“To achieve this in an already mature basin, we are combining forces with Equinor, a partner of many year,” Yujnovich said.