Britain’s Shell and Norway’s Equinor have completed the deal to combine their offshore oil and gas operations in UK waters to form a new operator — Adura.

The joint venture, which was formally launched on Monday, will be the largest independent hydrocarbon producer in the UK North Sea, both companies said.

Adura, which is owned 50:50 by Shell and Equinor, combines decades of North Sea expertise into a joint venture that is positioned to deliver a more cost-competitive portfolio and maximise long-term value for UK assets, the duo stated.

Adura combines Equinor’s and Shell’s interests in 12 producing oil and gas assets and projects under execution —Mariner, Rosebank, Buzzard, Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. The JV now also holds a number of exploration licences.

The new entity is headquartered in Aberdeen, with about 1200 people from both Shell UK and Equinor UK having transferred to Adura.

Neil McCulloch, who will lead Adura as chief executive, brings more than 30 years' experience in the energy sector.

He 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.”

Adura is expected to produce over 140,000 barrels of oil equivalent per day in 2026.

Some of both companies' assets have been left outside the JV.

Equinor will retain ownership of its Utgard, Barnacle and Statfjord fields that straddle the UK-Norway maritime boundary, and its offshore wind portfolio including Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank.

The Norwegian company will also retain its hydrogen, carbon capture and storage, power generation, battery storage and gas storage assets.

Meanwhile, Shell UK will retain ownership of its interests and projects that are part of the UK Shell Esso Gas and Associated Liquids (Segal) system in the UK that transports and processes North Sea gas and associated liquids.

Segal includes two gas pipelines, the St Fergus Gas Terminal, the Fife NGL Terminal and the Braefoot Bay tanker loading facility.

Shell UK will also keep the Bacton onshore gas terminal and multiple assets in the Southern North Sea, as well as retaining its interest in the Howe offshore oil and gas field.