British energy giant Shell and Norway’s Equinor announced on Thursday plans to merge their UK offshore oil and gas assets to create a jointly owned new company.
The combined company, based in Aberdeen, Scotland, “will be the largest independent producer in the UK North Sea”, the companies said in a statement.
The company “will be established to support the UK’s oil and gas production and security of energy supply,” the statement said.
The combined company is expected to produce more than 140,000 barrels of oil equivalent per day by 2025.
Equinor and Shell will own 50 percent of the new company.
Shell employs around 1,000 people in UK oil and gas positions, compared to Equinor’s 300.
“Domestically produced oil and gas is expected to play a significant role in the future of the UK’s energy system,” said Zoe Yujnovich, Shell’s integrated gas and upstream director.
“To achieve this in a basin that is already ripe for this, we are joining forces with Equinor, a partner of many years,” said Yujnovich.
