Six months after announcing their planned UK North Sea incorporated joint venture (JV), Equinor and Shell said they expect to launch their JV later this year.
Last December, the two operators revealed plans to create a JV that would become the largest independent oil and gas producer in the UK North Sea, and on 26 June, Equinor and Shell announced the company would be named Adura, using the “A” of Aberdeen and the “dura” of durability.
Camilla Salthe, senior vice president for Equinor UK Upstream, said in a press release, “For us, the name Adura represents the very heart of this company and speaks to its people and place within an energy community anchored in Aberdeen, alongside its longevity and commitment to the North Sea.”
Shell has said the new company will invest to provide a long-term sustainable future for individual oil and gas fields and platforms in the region.
Headquarters will be at the Silver Fin building in Aberdeen’s city center. The companies are working to secure regulatory approvals.
Simon Roddy, senior vice president for Shell UK Upstream, said in a press release, “When Adura launches later this year, it will become the UK’s largest independent producer. Through combining assets and expertise, we will create a robust portfolio, with a shared purpose, to unlock long-term value.”
In announcing the JV in December 2024, the companies said combining their portfolios and expertise would allow for continued economic recovery of a maturing basin where production is naturally declining. The expectation, Equinor said at the time, was a company that would be more agile, cost-competitive, and strategically positioned to maximize the value of the combined portfolios on the UK Continental Shelf (UKCS).
Currently Shell UK produces more than 100,000 BOEPD and Equinor produces about 38,000 BOEPD in the UK North Sea. Adura, expected to produce more than 140,000 BOEPD in 2025, will be equally owned by the two operators, with each holding 50% interest.
Adura will include Equinor’s equity interests in Mariner, Rosebank, and Buzzard, along with Shell’s equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion. A range of exploration licenses will also be part of the transaction.
Equinor will retain ownership of its cross-border assets–Utgard, Barnacle, and Statfjord–as well as its offshore wind portfolio, including Sheringham Shoal, Dudgeon, Hywind Scotland, and Dogger Bank. It will also retain the hydrogen, carbon capture and storage, power generation, battery storage, and gas storage assets.
Shell UK will retain ownership of its interests in the Fife NGL plant, St Fergus Gas Terminal, and the MarramWind and CampionWind floating wind projects under development. It will also remain technical developer of the Acorn carbon capture and storage project in Scotland.
In the December 2024 announcement, Equinor said that following completion of the JV formation, the new company will be self-funded and that Equinor’s ownership stake will be equity accounted, so no organic capital expenditures related to the investment will be reported by Equinor. The Norwegian company said the transaction will enable Equinor to benefit from increased short-term production and cash flow while the more balanced ownership structure of the assets will contribute to reduced overall risk exposure.
Also on 26 June, Shell released a statement in response to media speculation that the supermajor was considering making an offer for BP. Shell said it “has not made an approach to, and no talks have taken place with, BP with regards to a possible offer.”
