The British subsidiaries of the oil and gas groups Shell and Equinor have launched a new joint venture, which will combine their offshore assets in the United Kingdom. The incorporated joint venture (IJV) will reunite Equinor UK and Shell UK (each will have a 50% stake), creating the UK’s largest independent oil and gas producer. The company is expected to be headquartered in Aberdeen (Scotland, UK) and it will gather the companies interests in offshore projects, as well as several exploration licenses. The joint venture is expected to produce around 140 kboe/d in 2025. The transaction is effective 1 January 2025 and is expected to complete later that year pending regulatory approvals.
Equinor will retain its interest in its offshore wind portfolio (Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank) and will maintain ownership of its cross-border assets (Utgard, Barnacle and Statfjord). Battery storage, hydrogen and carbon capture and storage projects are also excluded from the transaction.
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