Norwegian Equinor and Dutch and British Shell are merging their UK offshore oil and gas assets to form a new company.
The company will be the largest independent oil and gas producer on the British shelf, according to Equinor itself.
The new company will be 50 percent owned by both oil giants.
This opens a new chapter where the companies will continue to be significant players in the UK energy industry,
Equinor writes in a press release
The company will be based in Aberdeen, Scotland and will include Equinor's holdings in Mariner, Rosebank and Buzzard, and Shell's holdings in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion.
A number of exploration licenses will also be included in the merger.
Equinor has been a reliable energy partner for the UK for over 40 years by supplying oil and gas, developing the offshore wind industry and promoting decarbonisation, says Philippe Mathieu, Executive Vice President for Exploration and Production International at Equinor.
This transaction strengthens Equinor's cash flow in the short term, he says.
By combining Equinor and Shell's assets, the new oil company will play a crucial role in securing the UK's energy supply, he says.
Equinor has around 300 employees in oil and gas positions in the UK, while Shell has around 1,000 employees in similar oil and gas positions.
We really see the value in combining our fields and projects. We then see much longer-term value creation, says Camilla Salthe, director, Equinor UK offshore.
Camilla Salthe. Photo: Arne Reidar Mortensen / Equinor
She believes the merger will be a strength for Equinor’s portfolio.
The main reason we are doing this is the value creation element. We will also be able to extend our lifespan,
Camilla Salthe concluded
Source: NRK
Read more on the topic:
Equinor and Shell to create the UK’s largest independent oil and gas company / Equinor.com (5.12.2024)
Shell and Equinor to create the UK’s largest independent oil and gas company / Shell.com (5.12.2024)
Equinor and Shell to create the UK’s largest independent oil and gas company / Globe Newswire (5.12.2024)
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