Shell, Equinor Form ‘Largest’ Independent UK North Sea Oil and Gas Producer

(Credit: Equinor)

Shell U.K. Limited, a subsidiary of Shell and Equinor UK Limited, a subsidiary of Equinor, completed a deal to combine their UK offshore oil and gas operations to form a new company, described as the largest independent producer in the UK North Sea.

Adura, jointly owned by Shell (50%) and Equinor (50%), combines decades of North Sea expertise into a joint venture that is positioned to deliver a more cost-competitive portfolio and maximize long-term value for UK assets.

Adura assumes Equinor and Shell’s interests in 12 producing oil and gas assets and projects in execution, including: Mariner, Rosebank, Buzzard, Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion.

It also holds a number of exploration licenses. The company is headquartered in Aberdeen. Staff from both Shell and Equinor have transferred into Adura, ensuring that industry-leading expertise is retained.

Equinor will retain ownership of its cross-border assets, Utgard, Barnacle and Statfjord and offshore wind portfolio including Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank. It will also retain the hydrogen, carbon capture and storage, power generation, battery storage and gas storage assets.

Shell U.K. Limited will retain ownership of its interests and projects that are part of the UK SEGAL system, namely Fife NGL Plant, St Fergus Gas Terminal and the Braefoot Bay facility, and in the Bacton onshore gas terminal and multiple assets in the Southern North Sea. It also retains its interest in the Howe asset as well as a number of assets that are post cessation of production.

“It’s a rare privilege to be part of a company’s first chapter. A commitment to safety, a belief in the future of the North Sea, and the combined expertise from Equinor and Shell form the foundation of our exciting new company. I can't wait to begin working with this exceptional team,” said Neil McCulloch, who will lead Adura as CEO, bringing more than 30 years' experience in the energy sector.

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