Shell and Equinor have announced plans to create a new company by combining their North Sea oil and gas assets.
Energy companies said the offshore deal – which is subject to regulatory approval – would see the creation of the North Sea's largest oil and gas producer.
Shell said there would be no job losses as a result.
The new company would be based in Aberdeen.
Shell predicted the move could “improve” the longevity of jobs in the UK’s oil and gas sector.
It employs around 1,000 people in oil and gas roles in the UK, while Equinor employs around 300 people in similar roles.
Zoe Yujnovich, director of Shell's integrated gas and upstream business, said anyone spending the majority of their time working on Shell and Equinor's North Sea assets – such as oil rigs – would be transferred to the new company.
She said the deal could result in a “growing and more prosperous” combination, adding: “From an employee perspective, I think it can really improve the diversity of career choices, but also, I would say, the longevity of their career. “
Equinor said the joint venture would include its stakes in Mariner, Rosebank and Buzzard, as well as Shell's stakes in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion.
A range of exploration licenses will also be part of the transaction.
Philippe Mathieu, Equinor's executive vice president for international exploration and production, said: “Equinor has been a trusted energy partner to the UK for over 40 years, supplying oil and gas, growing the industry offshore wind and advancing decarbonization.
“This new entity will play a crucial role in securing the UK’s energy supply.”
The company would be a 50/50 joint venture.
