Equinor and Shell have unveiled plans to form a JV that will combine their UK offshore oil and gas assets.

According to Equinor, the new JV will be the UK North Sea’s “largest independent oil and gas producer”.

The venture, equally owned by both companies, will aim to ensure the continued production of domestic oil and gas and enhance the security of the UK’s energy supply.

This collaboration will also address the challenges of a maturing basin with declining production, leveraging the companies' combined portfolios and experience to continue the economic recovery of the UK's vital resources.

The new JV aims to “enhance agility, focus and cost-competitiveness”, optimising UK Continental Shelf assets while investing in the long-term sustainability of oil and gas fields, supporting the sector’s longevity and benefitting the UK economy.

Headquartered in Aberdeen, the JV will incorporate Equinor's interests in fields such as Mariner, Rosebank and Buzzard, and Shell’s stakes in Shearwater, Penguins, Gannet and Nelson, along with various exploration licences.

Equinor executive vice-president Philippe Mathieu said: “Equinor has been a reliable energy partner to the UK for over 40 years, providing oil and gas, developing the offshore wind industry, and advancing decarbonisation for Exploration and Production International.

“This transaction strengthens Equinor’s near-term cash flow, and by combining Equinor’s and Shell’s long-standing expertise and competitive assets, this new entity will play a crucial role in securing the UK’s energy supply.”

Shell integrated gas and upstream director Zoë Yujnovich said: “Domestically produced oil and gas is expected to have a significant role to play in the future of the UK’s energy system.

“To achieve this in an already mature basin, we are combining forces with Equinor, a partner of many years. The new venture will help play a critical role in a balanced energy transition providing the heat for millions of UK homes, the power for industry and the secure supply of fuels people rely on.”

Currently, Equinor's UK production stands at approximately 38,000boepd, while Shell UK produces more than 100,000boepd.

The new independent JV is projected to produce more than 140,000boepd by 2025.

The completion of this transaction is subject to regulatory approvals and is expected by the end of 2025.