18/12/2024 by Richard
Following a new agreement, gas and oil titans Equinor and Shell will now combine the offshore UK assets they hold in the North Sea.
Their joint ambition is to create what the companies anticipate will become the region’s largest independent enterprise for oil and gas company.
The venture has the companies standing as equal partners with 50-50 shares and will feature an impressive portfolio with a total production of over 140,000 barrels of oil equivalent per day (BOE/D).
North Sea production is currently experiencing a natural decline, as reserves continue to dry up. Many multinationals have started offloading assets, with lubricant manufacturers like Shell recently confirming plans involving the sale of 11 gas fields, and a UK exploration prospect based in the Southern North Sea to Viaro Energy – the British independent operator.
However, energy firms have not deserted the basin yet, with Equinor and Shell striving to develop the Rosebank and Jackdaw fields respectively. Reportedly, Rosebank is the largest new oil field in the North Sea remaining undeveloped. Experts expect it contains approximately 500m barrels of gas and oil.
The new merger will involve Shell combining its 1,000-strong staff in the UK with the 300-person workforce of Equinor in similar gas and oil and positions around the country. Through the partnership, the oil and gas giants will keep control of their respective assets and oil fields, which includes Shell’s interests like Schiehallion, Gannet, Jackdaw, Shearwater and Clair, and Equinor’s interests in Rosebank, Buzzard and Mariner.
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