Oil companies Equinor and Shell have announced their decision to unite their UK offshore oil and gas assets to create a new joint venture. This agreement will create the largest independent hydrocarbon production company in the North Sea basin.
The creation of an oil company between Equinor and Shell
Both companies have decades of experience in North Sea offshore platform operations , and are looking to strengthen the national energy supply to ensure the continuity of production in this region. Energy production in this area has been naturally declining over time, but the collaboration between Shell and Equinor will allow for more efficient and competitive resource recovery.
Once the transaction is completed, the new energy company will be jointly owned by both corporations, with each holding 50% of the shares. The new producer will become the largest independent producer in the region, with an estimated energy production of more than 140,000 barrels of oil equivalent per day by 2025.
The joint venture will focus on long-term hydrocarbon extraction , securing the future of important oil and gas deposits. In addition, exploration licenses will be part of the agreement, allowing new opportunities to maximize the value of resources in this strategic basin. In this sense, the new business alliance will also seek to contribute to the energy supply of Great Britain, a nation whose energy future depends largely on the stability of oil and gas production.
Equinor Executive Vice President Philippe Mathieu said the deal will strengthen the company’s revenues in the short term and offer a new strategic platform to remain a key player in the global energy transition. Shell’s Zoë Yujnovich said the collaboration will contribute to a balanced energy transition, ensuring energy supply for millions of British households and industry.
This joint venture will be a pillar in ensuring the security and stability of the UK’s energy supply. Based in Aberdeen, the two energy companies are fully confident that this strategic alliance will improve the competitiveness of oil and gas production globally, while promoting the transition to a more sustainable economy.
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Source and photo: Equinor
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