Video | Shell and Equinor announce UK asset merger to create new JV

Equinor and Shell are to combine their UK offshore oil and gas assets in a new incorporated joint venture, owned 50/50. We delve into this topic in a recent video, fill out the form to access this full analysis.

Establishing an upstream strategic venture (SV) is a first for both Shell and Equinor, representing a growth opportunity. This new company will be tasked with enhancing performance and creating value that could not have been achieved under the previous organisational structure.

Additionally, this deal signals confidence in the UK offshore sector, which has recently faced unprecedented fiscal volatility. Since 2022, there have been multiple changes to the Energy Profits Levy, and discussions regarding a successor to the EPL, effective post-2030, are set to begin in 2025. Despite these uncertainties and risks, it is evident that the UK remains attractive for certain companies.

This collaboration will provide greater certainty for long-term investment in the UK Continental Shelf (UKCS).

Watch now

For more analysis, fill in the form at the top of the page to access the full video which dives deeper into this  partnership using Lens Upstream.

In this brief video, our experts delve into discussions on:

· What the combined portfolio looks like and the key assets.

· What are the synergies and scope for future growth?

· What is the value of the combined portfolio and the potential risks?

We also provide insights into the strategic rationale for merging the businesses and its implications for the UK North Sea.