Shell, Equinor Launch Adura as Biggest Player in U.K. North Sea

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)

Summary

A year on from first announcing their intentions, Shell plc (London, England) and Equinor (Stavanger, Norway) have merged their North Sea offshore oil and gas assets into a new company, Adura (Aberdeen, U.K.).

New Kid on the Block

Shell plc (London, England) and Equinor (Stavanger, Norway) are now the largest independent producer in the U.K. North Sea having launched their merged offshore oil and gas assets into a new company, Adura (Aberdeen, U.K.). The 50:50 joint venture will now manage Equinor's equity interests in Mariner, Rosebank and Buzzard, and Shell's equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. Adura will also oversee multiple exploration licences and, according to the partners, deliver a "cost-competitive portfolio and maximize long-term value for U.K. assets". They first announced their plans to merge last December. For additional information, see December 16, 2024, article--Shell, Equinor Merge North Sea Operations.

Adura Chief Executive Officer Neil McCulloch said: "It's a rare privilege to be part of a company's first chapter. A commitment to safety, a belief in the future of the North Sea, and the combined expertise from Equinor and Shell form the foundation of our exciting new company. I can't wait to begin working with this exceptional team." Equinor's executive vice president for Exploration and Production International, Philippe Mathieu, added: "Adura represents a new chapter in the U.K. North Sea, bringing together two strong portfolios and decades of experience. With the focus, scale and operational flexibility needed to succeed, the company is positioned for long-term impact. As owners, we are confident that Adura will generate long-term value and reinforce the UK North Sea's role in meeting the country's energy needs."

Adura, which will be self-funded, employs approximately 1,200 people and is expected to produce over 140,000 barrels of oil equivalent (Boe) per day in 2026. Data produced by Wood Mackenzie (Edinburgh, U.K.), indicates that Adura will be the largest producer in the U.K. North Sea in 2026. 

What Adura Will Not Control

Equinor will retain ownership of its cross-border assets, Utgard, Barnacle and Statfjord, and 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 will retain ownership of its interests and projects that are part of the U.K. SEGAL system, namely Fife NGL Plant, St. Fergus Gas Terminal and the Braefoot Bay facility, and in the Bacton onshore gas terminal and multiple assets in the Southern North Sea. It also retains its interest in the Howe asset. 

Adura Faces Uphill Struggle

The North Sea has seen declining oil and gas reserves over the last 20 years, with more than 70,000 jobs lost in the last decade The Labour-led U.K. government is against new oil and gas exploration in the North Sea but last week launched its new North Sea Strategy, aiming to ease restrictions. While still against new exploration, the new plan will introduce new Transitional Energy Certificates which will enable "limited oil and gas production on or near to existing fields", so long as the additional production does not require new exploration and is already part of, or links back, to existing fields and infrastructure. A new North Sea Jobs Service will seek to prepare the current workforce seeking new opportunities in growing industries including clean energy, defence, and advanced manufacturing. However, it does not include permits for Adura's major Rosebank and Jackdaw projects.

Permits granted for two of the U.K.'s largest proposed oil and gas projects--Rosebank and Jackdaw--were ruled unlawful in court earlier this year on environmental grounds, setting them back years. For additional information, see February 17, 2025, article--Permit Blocked for U.K.'s Largest Oil & Gas Project. Rosebank is the country's largest untapped oil field and is estimated to contain up to 300 million Boe. Developing the field has a total investment value in excess of £8 billion (US$10.5 billion). Jackdaw, located approximately 275km east of Aberdeen in the central North Sea, has reserves of 120- 250 million Boe. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can find details on the four Rosebank projects here and six Jackdaw projects here.

Key Takeaways

• Adura (Aberdeen, U.K.) is the new company formed from the merged North Sea offshore oil and gas assets of Shell plc (London, England) and Equinor (Stavanger, Norway). 
• It will be the largest independent producer in the U.K. North Sea
• Adura employs 1,200 people and is expected to produce over 140,000 barrels of oil equivalent (Boe) per day in 2026.

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