Equinor and Shell to Establish UK's Largest Independent Oil and Gas Company
Deal News | Dec 05, 2024 | Equinor ASA
Equinor ASA and Shell are forming a joint venture to create the UK's largest independent oil and gas company, equally owned by both partners. The venture aims to enhance the domestic production and secure energy supply by combining their UK Continental Shelf assets and expertise. Based in Aberdeen, the new company will be strategically positioned to continue economic recovery of oil and gas resources in the UK. The joint venture is expected to operate with a production capacity of over 140,000 barrels of oil equivalent per day by 2025. This deal is aligned with Equinor's focus on securing cash flow and reducing risk exposure, while also supporting the UK's energy transition.
Sectors
- Energy
- Oil and Gas
Geography
- United Kingdom – The focus of the article is on the UK's energy industry, particularly the formation of a new independent oil and gas company to operate on the UK Continental Shelf.
- Norway – Equinor ASA, a Norwegian company, is one of the primary participants in the joint venture.
- Netherlands – Shell, headquartered in the Netherlands, is another primary participant in the joint venture.
Industry
- Energy – The article pertains to the energy industry, specifically focused on the oil and gas sector. It discusses a joint venture between two major energy companies to secure energy supply in the UK.
- Oil and Gas – This sector is directly relevant as the joint venture involves combining oil and gas assets on the UK Continental Shelf for enhanced production.
Financials
- 50% – Equinor's ownership stake in the new joint venture.
- 38,000 barrels per day – Current oil equivalent production by Equinor in the UK.
- 100,000 barrels per day – Current oil equivalent production by Shell in the UK.
- 140,000 barrels per day – Expected production capacity of the new venture by 2025.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Equinor ASA | Bidding Company | Company | A Norwegian energy company involved in the joint venture to create the UK's largest independent oil and gas provider. |
| Shell | Bidding Company | Company | A major energy company headquartered in the Netherlands, partnering with Equinor in this joint venture. |
| Philippe Mathieu | Executive Vice President for Exploration and Production International | People | An executive at Equinor, commenting on the joint venture's strategic significance. |
| Zo Yujnovich | Integrated Gas and Upstream Director | People | An executive at Shell, discussing the role of the new venture in the UK’s energy system. |