Norway's Equinor and Shell announced Thursday plans to combine their UK offshore oil and gas assets and expertise to form a new company which will be the UK North Sea's biggest independent producer.
The incorporated joint venture will be structured to sustain domestic oil and gas production and security of energy supply in the UK, Equinor announced.
The new company is expected to produce over 140,000 barrels of oil equivalent per day in 2025.
In the UK, Equinor currently produces approximately 38,000 barrels of oil equivalent per day while Shell UK produces over 100,000 barrels of oil equivalent per day.
'The new company will invest to provide a long-term future for the individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the UK,' according to the press release.
'This transaction strengthens Equinor's near-term cash flow, and by combining Equinor’s and Shell’s long-standing expertise and competitive assets, this new entity will play a crucial role in securing the UK’s energy supply,' Philippe Mathieu, Equinor's executive vice president for exploration and production international, commented.
'The new venture will help play a critical role in a balanced energy transition providing the heat for millions of UK homes, the power for industry and the secure supply of fuels people rely on,' said Zoë Yujnovich, Shell's integrated gas and upstream director.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr