Shell and Equinor Form UK’s Largest Oil & Gas Operator
Shell and Equinor recently announced plans to combine their UK North Sea assets into a new company, becoming the UK’s largest oil and gas operator. This joint venture, subject to regulatory approval, aims to produce over 140,000 barrels of oil equivalent per day next year. Both companies will hold equal stakes in the new entity, with approvals expected by the end of 2025.
Aberdeen Chosen as Headquarters
The decision to headquarter the new company in Aberdeen was motivated by the city’s reputation as a hub for North Sea activity. Shell UK’s Zoe Yujnovich emphasized the importance of talent and expertise existing in Aberdeen, making it the ideal location for the joint venture. This move is seen as an opportunity to leverage the strengths of both Shell and Equinor and drive competitiveness in the North Sea region.
Job Creation and Economic Impact
The joint venture is expected to create a total of 1,300 jobs, with 1,000 positions coming from Shell and 300 from Equinor. This announcement not only signals further investment but also provides a sense of job security for employees. Yujnovich highlighted the potential for more job opportunities arising from the competitive outlook of the new venture, emphasizing the value of the transaction in supporting existing operational assets.
Future Headquarters Location
Simon Roddy, senior vice president upstream at Shell UK, expressed his personal connection to Aberdeen and the significance of shaping the future of the North Sea sector. While the new offices in the Silver Fin building on Union Street are currently in use, Roddy confirmed advocacy for locating the new headquarters within Aberdeen’s city center. The new company will take over stakes in various fields from both Equinor and Shell, ensuring the continuity of operations in the region.