Aberdeen & Grampian Chamber of Commerce’s Post

I’m excited to see another impressive deal in the UK North Sea! Two major players, Shell and Equinor, are collaborating to maintain energy supply. According to the press release, I worked with Jac Parsons in S&P Global platform to run those assets  and establish them as one entity under the newly formed company. One of the key insights from managing this portfolio is the complexity surrounding ownership. It appears that other companies may be owned by either Shell UK Ltd or Shell Plc, making it challenging to calculate the working interests in these assets. This complexity also complicates the replication of production profiles, while Equinor UK Ltd operates in a more straightforward manner. I encourage you to explore these companies using publicly available information from Companies House. While not all UK-producing assets were included in this deal, I find the combination of assets and their locations intriguing, as they are fairly dispersed. I’m eager to see how this will evolve with potential future developments. My first question is: Why were the Clair, Jackdaw, Rosebank, and Mariner assets included, but cross-border assets were not? It seems likely that tax synergies, infrastructure optimization, and energy transition strategies influenced this deal. The potential EBITDA for the next five years looks promising and supports increased production levels. Another question: What does it mean for a company to be independent? Two listed companies will own this new entity, so what does the concept of independence signify in this context? I look forward to witnessing the development of what seems to be a solid strategy. I’d love to hear your thoughts on these developments! #upstream #energy #upstreamassetvaluation #upstreamportfoliovaluation #Upstream by S&P Global Commodity Insights

A Landmark Collaboration: Shell and Equinor Unite in the UK North Sea. The UK North Sea energy sector is poised for significant change with Shell and Equinor announcing plans to combine their UK offshore oil and gas operations. The resulting joint venture, based in Aberdeen, will become the largest independent producer in the region, focusing on enhancing domestic energy production and reinforcing energy security for the UK. In a basin facing natural production decline, this partnership reflects a strategic effort to optimise the recovery of remaining resources. By merging expertise and portfolios, the collaboration aims to extend the operational lifespan of key oil and gas assets, ensuring their continued contribution to the nation’s energy needs as part of a carefully balanced energy transition. The venture is projected to deliver substantial output, exceeding 140,000 barrels of oil equivalent per day by 2025, with operations spanning a range of significant fields such as Mariner, Buzzard, Shearwater, and Schiehallion. Its establishment highlights the growing importance of collaboration and innovation in sustaining the energy industry amidst evolving challenges and priorities. As the North Sea continues to adapt, partnerships like this underscore the resilience and adaptability of the sector. At Chimera Advisory, we are actively tracking how such developments shape opportunities across the oil and gas landscape. #energysectoruk #shell #equinor #northseaoil #aberdeen

This landscape is ever evolving.

Shell and Equinor have announced they plan to form a new company by combining their oil and gas assets in the North Sea. The new company would be based in Aberdeen. The energy firms said the offshore deal - which is subject to regulatory approval - would see the creation of the North Sea's biggest oil and gas producer. Shell said there would not be any job losses as a result and predicted the move could "enhance" the longevity of UK oil and gas jobs. Equinor said the joint venture would include its equity interests in Mariner, Rosebank and Buzzard, and Shell’s equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. The company would be a 50-50 joint venture. #oilandgas #JV #rov #subsea

Equinor UK Ltd, and Shell UK Limited are to combine their UK offshore oil & gas assets & expertise to form a new IJV which will be the UK North Sea’s biggest independent producer. This will be set up to sustain domestic oil and gas production and security of energy supply in the UK. As we all know energy is the lifeblood of all modern economies, central to almost every economic activity, from manufacturing to transport to schooling to communicating, and thus integral to any country’s development.

Equinor and Shell Launch New UK Oil and Gas Company In a major development for the UK energy sector, Equinor and Shell have announced the creation of a new joint oil and gas company. Equally owned by both partners, the independent operator will become the largest oil and gas producer on the UK continental shelf. The new entity will oversee eight producing assets, with a combined output projected to exceed 140,000 barrels of oil equivalents per day by 2025. As the UK basin faces natural production decline, this collaboration aims to maximise recovery, ensure substantial investment, and support the UK economy. The move signals a commitment to securing the country’s energy supply for the long term. Equinor acknowledged the uncertainties this may bring for employees and pledged to handle the transition carefully, prioritising their well-being and the sustainability of the business. This new venture highlights the enduring importance of the UK energy sector and its role in the nation’s economic stability. #oilandgas #renewableenergy #ukenergy

🛢️ Equinor and Shell create the largest independent O&G company in the UK! In my view, joining forces to continue developing the North Sea for many years to come will... 1. Ensure reliable, high-density energy to be produced within Europe's borders. With high geopolitical uncertainty, this becomes increasingly important for a safe Europe. 2. Contribute to supplying the high demand for gas Europe will have for many years to come. This decreases the reliance on LNG, which can be expensive and sensitive to short-term supply chain price hikes. 3. Push operating costs down, which will be increasingly important over time, as the reservoirs become more marginal. Equinor will benefit from increased short-term production and cash flow. The more balanced ownership structure of the assets also contributes to reduced overall risk exposure. Read more: https://lnkd.in/dViNBW35 #oil #gas #NorthSea #Equinor #Shell

TotalEnergies, BP, Equinor and Shell commit $500 million to boost energy access Oil and gas majors TotalEnergies, opens new tab, BP, opens new tab, Shell, opens new tab and Equinor, opens new tab pledged on Friday to invest $500 million to increase access to affordable energy, primarily in sub-Saharan Africa, south and southeast Asia. Read More: https://lnkd.in/g434VHD5 🔽 Find more info in comments below 🔽 #TotalEnergies #BP #Equinor #Shell #Investment #OilandGasNews #OilandGasJobs ⤵️ Click Follow on our page to keep up to date with energy news ⤵️

🌍 Shell and Equinor: Transforming the North Sea Energy Landscape Shell and Equinor are teaming up to create the largest independent oil and gas producer in the British North Sea. Here’s what stands out: • Joint Venture Details: A 50-50 partnership based in Aberdeen, Scotland. • Current Output: 140,000 barrels of oil equivalent per day (boed). • Future Vision: Expected to increase production to 220,000 boed within five years. • Asset Inclusion: • Equinor’s equity interests in Mariner, Rosebank, and Buzzard. • Shell’s holdings in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion. • Focus: Pooling resources to improve efficiency, reduce costs, and boost profitability. This collaboration reflects the industry’s commitment to sustainable, efficient energy production while meeting global demands. A significant step forward for the North Sea energy landscape! #Energy #Collaboration #NorthSea

Equinor today reported Q2 ‘24 net income of USD 1.87 billion, up 2% year on year but around 30% lower than the previous quarter, amid an increase in gas production from the Norwegian Continental Shelf (NCS) and lower prices. High production particularly from the Troll and Oseberg fields contributed to a 13% increase in gas production from the NCS, compared to the same period last year, Equinor said. #GasMattersToday https://lnkd.in/gT8TtJDZ