Shell and Equinor are set to form the UK’s largest oil and gas operator – which will be headquartered in Aberdeen.
The firms announced plans to combine their UK North Sea assets into a new company, subject to regulatory approval.
They said it will allow “continued economic recovery of this vital UK resource”.
The joint venture is predicted to produce more than 140,000 barrels of oil equivalent per day next year.
The firms, who will hold equal stakes in the new company, estimate approvals will be delivered by the end of 2025.
Aberdeen will headquarter new joint venture
Shell UK integrated gas and upstream director Zoe Yujnovich believes Aberdeen is the “hub” for North Sea activity and is important the new company is headquartered in the Granite City.
She said: “The intention to headquarter the office here is about recognising is this where much of the talent and expertise exists.
“Having the team based here and focusing on the competitiveness of the North Sea will allow them the freedom to take the best bits of Shell UK and Equinor and adapt them.
“I see this as ultimately an advocate for the future.”
Ms Yujnovich is full of hope and confidence for the new project and puts this down to Shell’s history in the region.
She added: “We’re really proud of the pioneering and history and also what Aberdeen has attributed to that global legacy. That will never change.
“From early days there have been many obstacles which the North Sea has had to overcome with different market cycles.
“Different challenges, whether it be decommissioning or new growth opportunities.
“Having powerfully navigated through that history, we find ourselves here with a lot of optimism.
“The next chapter will be underpinned by all of the talent here and I have hope and confidence we can navigate any future which is thrown at the team here.”
Will Shell and Equinor create new jobs?
Ms Yujnovich said the announcement will enable a “competitive future”, further investment and also underpin job security.
She said: “There will be 1,300 working in the combined new entity, 1,000 of which will come from Shell and the other 300 from Equinor.
“We have been undertaking organisational restructuring and will soon see completion in that activity.
“When I look at the international joint venture it’s my personal view there is a real competitive outlook, which could provide more job opportunities.”
Ms Yujnovich said the value of the transaction is in the “assets which are in operation today”.
She believes the deal may well extend the life of those existing assets, with activity set to continue as it is currently.
Where will home the new headquarters?
Senior vice president upstream at Shell UK Simon Roddy started his career in Aberdeen more than 30 years ago.
He said: “The move is really important for us and for me personally. The North Sea is in decline and this is an opportunity to shape the future of the sector.
“We’re delighted with our new offices in the Silver Fin building on Union Street at the moment, but clearly for the new venture it’s very early stages.
“I can assure you we will advocate for the new headquarters to be located within the city centre.”
The new firm will take over stakes of Equinor’s Mariner, Rosebank and Buzzard fields as well as Shell’s Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion.
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