Oil and gas majors Shell and Equinor have completed the transaction to combine their offshore UK oil and gas operations in a 50/50 joint venture, Adura, which will be UK’s largest independent North Sea producer, Shell said on Monday.
Adura was launched on December 1 and will be led by Neil McCulloch as chief executive officer, bringing more than 30 years of experience in the energy sector.
“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,” McCulloch said in a statement.
Adura, which currently employs approximately 1,200 people, is expected to produce more than 140,000 barrels of oil equivalent per day (boepd) of oil and gas in 2026.
According to data produced by Wood Mackenzie, Adura is expected to produce more oil and gas from the UK North Sea than any other producer in 2026, Shell noted.
The launch of the new company coincided with the blow to the UK North Sea oil and gas industry as the government kept the windfall tax on operators in the budget unveiled last week.
Offshore Energies UK (OEUK) has condemned the government’s decision in the Budget to reject replacement of the Energy Profits Levy (EPL) in 2026 – a move that will cost tens of thousands of jobs, cripple investment, and undermine Scotland and the UK’s energy security.
“The future of North Sea energy depends on investment, which won’t come without urgent reform of the windfall tax,” OEUK Chief Executive, David Whitehouse, said in a statement.
“If the levy stays in place beyond 2026, projects will stall and jobs will vanish, no matter how pragmatic licensing policy becomes. Fixing this outdated tax is the key to unlocking billions in investment across the UK’s entire energy mix,” Whitehouse added.
By Tsvetana Paraskova for Oilprice.com
