Shell and Norway's Equinor will merge their British offshore oil
and gas assets into an equal joint venture.
They announced the deal on Thursday.
Based in Aberdeen, Scotland, the Ventures expected to produce over
140,000 barrels of oil equivalent per day.
The new entity will become the British N Seas biggest
independent producer, but Shell told reporters that there's no intention
to conduct an initial public offering.
The aging British North Sea basin, where production started in
the 1970s, has seen a steady exit of oil companies
in recent decades as production declined.
The British government's decision to impose a windfall tax on
North Sea producers following a surge in energy costs in
2022 has further put pressure on producers to reduce investment
and exit to the basin.
Equinor is currently developing the Rosebank oil field, one of
the last known major oil reservoirs in Britain, while Shell
is developing the Jackdaw gas field.
A range of exploration licenses are also thought to be
part of the transaction.
The companies expect completion of the deal by the end
of next year.