Shell and Equinor Launch Adura as UK’s Largest North Sea Producer

Shell and Equinor have formally combined their UK offshore oil and gas operations to create Adura, a new 50:50 joint venture that instantly becomes the largest independent producer in the UK North Sea. The deal, first announced earlier this year and now completed, marks one of the most significant restructurings in the basin in over a decade, as international oil majors streamline portfolios while seeking to extend the life of mature assets.

Adura will be led by industry veteran Neil McCulloch, who framed the launch as both a strategic reset and a long-term bet on the North Sea’s remaining potential. The company will manage a consolidated portfolio of 12 producing fields and major projects, including flagship assets such as Mariner, Rosebank, Buzzard, Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion, as well as multiple exploration licences.

Based in Aberdeen and employing roughly 1,200 staff, Adura is expected to deliver more than 140,000 boe/d in 2026, according to Wood Mackenzie – surpassing all other producers in the basin.

For Shell, the formation of Adura offers a route to drive down operating costs and sharpen focus while retaining exposure to UK liquids and gas production. Rich Howe, Shell’s EVP for Conventional Oil & Gas, said the move reflects a “historic moment” for the UK sector, arguing that combining two deep asset bases creates a business fit to lead a mature province through its next phase.

Equinor echoed that framing, emphasising scale and operational flexibility. EVP Philippe Mathieu said the joint venture “brings together two strong portfolios and decades of experience,” reinforcing the UK’s supply resilience at a time when domestic production remains politically sensitive.

The formation of Adura aligns with broader industry trends in the North Sea, where operators are consolidating assets to enhance efficiency amid rising fiscal pressure and declining output from aging fields. The UK’s Energy Profits Levy has accelerated the withdrawal of some players and pushed others toward joint ventures and mergers to maintain competitiveness.

Both Shell and Equinor retain ownership of strategic infrastructure and non-upstream businesses. Equinor continues to hold its cross-border upstream assets, Utgard, Barnacle and Statfjord, along with its major offshore wind portfolio (Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank) and emerging hydrogen, CCS, and storage businesses. Shell retains key midstream infrastructure through the UK SEGAL system and assets at Bacton, as well as select Southern North Sea and post-production assets.

With its sizeable production base and deeper bench of technical staff, Adura is positioned to play an outsized role in what remains of the UK’s upstream sector, even as fiscal, regulatory, and political uncertainty continues to reshape operator behavior.

By Charles Kennedy for Oilprice.com

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