Equinor and Shell to form the UK's largest independent oil and gas business through a joint venture.

• In Aberdeen, Scotland, a joint venture between Shell and Equinor will be established to maintain fossil fuel production and ensure energy security in the U.K.
• The deal will be completed by the end of next year, pending approvals.
• Shell announced that at that time, the incorporated company will become the U.K. North Sea's largest independent producer.

On Thursday, Equinor and an oil major announced plans to form a jointly owned energy company by combining their British offshore oil and gas assets.

An effort is being made to establish a joint venture in Aberdeen, Scotland, to maintain fossil fuel production and ensure energy security in the U.K.

The U.K. North Sea's largest independent producer will be the incorporated company once the deal is completed by the end of next year, subject to approvals, Shell announced.

It is anticipated that the company will generate over 140,000 barrels of oil equivalent daily in 2025.

At 8:05 a.m. London time, the stock price of Shell decreased by 0.4%, while Equinor's stock price increased by 0.6%.

Shell's integrated gas and upstream director, Zoë Yujnovich, stated that domestically produced oil and gas will likely play a significant role in the UK's energy system in the future.

Yujnovich stated that the new venture will play a crucial role in the balanced energy transition, supplying heat for millions of UK homes, power for industry, and ensuring a secure supply of fuels that people depend on.

The joint venture will consist of Equinor's stakes in Mariner, Rosebank, and Buzzard, as well as Shell's ownership in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion.

In the U.K., Equinor has around 300 employees, while Shell has approximately 1,000 staff in oil and gas positions.

The transaction will enhance Equinor's near-term cash flow, and by combining Equinor's and Shell's long-standing expertise and competitive assets, the new entity will be critical in ensuring the UK's energy security, according to Philippe Mathieu, executive vice president for exploration and production international at Equinor.