Shell, Equinor Form JV To Lead UK North Sea Oil Production

Shell PLC (NYSE:SHEL) has finalized a deal with Equinor ASA (NYSE:EQNR) to merge their U.K. offshore oil and gas operations into a new company called Adura.

The new company was launched on Monday and is expected to be the largest independent producer in the North Sea.

Equinor will retain its cross-border assets—Utgard, Barnacle, and Statfjord—as well as its offshore wind portfolio, plus hydrogen, carbon capture and storage, power generation, battery storage, and gas storage assets.

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Shell U.K. Limited will keep its U.K. SEGAL system interests, including the Fife NGL Plant, St Fergus Gas Terminal, Braefoot Bay facility, Bacton gas terminal, multiple Southern North Sea assets, the Howe asset, and several post-cessation assets.

Adura Details

Adura, equally owned by Shell and Equinor, unites decades of North Sea experience to create a joint venture aimed at enhancing cost efficiency and maximizing the long-term value of U.K. assets.

The new company, headquartered in Aberdeen, takes on 12 producing and in-development assets from Shell and Equinor, plus exploration licenses, with transferred staff ensuring continuity of top North Sea expertise.

Adura is projected to produce over 140,000 barrels of oil equivalent per day in 2026, making it the top U.K. North Sea producer.

Shell's Executive Vice President for Conventional Oil & Gas, Rich Howe stated, "Forming the largest independent producer together with Equinor is an historic moment for our business and the U.K. energy industry. With an exceptional asset base and industry-leading expertise, Adura is well-positioned to lead in this mature basin."

Equinor's Executive Vice President for Exploration and Production International, Philippe Mathieu, said, "Adura represents a new chapter in the U.K. North Sea, bringing together two strong portfolios and decades of experience. With the focus, scale and operational flexibility needed to succeed, the company is positioned for long-term impact."

Recent Key Events

The company's subsidiary, Shell International Trading Middle East Limited FZE, penned a 15-year deal with Abu Dhabi National Oil Company (ADNOC).

Price Action: SHEL shares are up 0.33% at $74.01 premarket at the last check on Monday.

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