British energy giant Shell and Norway’s Equinor announced plans on Thursday to merge their UK oil and gas assets to create a new jointly owned company.
Based in Aberdeen, Scotland, the joint venture “will be the largest independent producer in the UK North Sea”, the companies said.
The company “will be established to maintain domestic oil and gas production and the security of energy supply in the UK,” it said in a statement.
The joint venture is expected to produce more than 140,000 barrels of oil equivalent per day in 2025.
Equinor and Shell will each have a 50 percent stake in the new company.
Shell employs around 1,000 people in oil and gas operations in the UK compared with 300 for Equinor.
“Domestic oil and gas production is expected to play a significant role in the future of the UK energy system,” said Zoe Yujnovich, Shell’s director of integrated gas and production.
“To achieve this in an already mature pool, we are joining forces with Equinor, a long-standing partner,” said Yujnovich.
