Shell and Equinor to combine forces in North Sea

Shell and Equinor have announced they plan to form a new company by combining their oil and gas assets in the North Sea.

The energy firms said the offshore deal - which is subject to regulatory approval - would see the creation of the North Sea's biggest oil and gas producer.

Shell said there would not be any job losses as a result.

The new company would be based in Aberdeen.

Shell predicted the move could "enhance" the longevity of UK oil and gas jobs.

It employs about 1,000 people in oil and gas roles in the UK, while Equinor employs about 300 people in similar jobs.

Zoe Yujnovich, director of Shell's integrated gas and upstream business, said anyone who spent a majority of their time working on Shell and Equinor's North Sea assets - such as oil rigs - would transfer to the new company.

She said the deal could result in a "growing and more prosperous" combination, adding: "From an employee point of view, I think that that can really enhance diversity of career choices, but also, I would argue, longevity of their career."

Equinor said the joint venture would include its equity interests in Mariner, Rosebank and Buzzard, and Shell’s equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion.

A range of exploration licences will also be part of the transaction.

Equinor’s executive vice president for exploration and production international, Philippe Mathieu, said: “Equinor has been a reliable energy partner to the UK for over 40 years, providing oil and gas, developing the offshore wind industry, and advancing decarbonisation.

"This new entity will play a crucial role in securing the UK’s energy supply.”

The company would be a 50-50 joint venture.

Climate lawyer Tessa Khan, executive director of Uplift - which supports the transition away from oil and gas - said: "This consolidation is because the North Sea is in decline and it is now eye-wateringly expensive to get what’s left of the oil out of the basin."