Equinor (OSLO: EQNR) chief executive Anders Opedal acknowledged the uncertain times facing its UK-based staff following the surprise announcement of a joint venture with Shell (LON: SHEL).
The new independent firm, entirely owned by the two European supermajors, is set to take over both firm’s UK oil and gas assets and is expected to produce 140,000 barrels of oil equivalent per day next year.
Shell said on Thursday that it would be sending 1,000 employees to the new firm while Equinor sends across 300.
Following the news of the joint venture, Opedal wrote on the LinkedIn social media channel: “I understand that this message brings uncertainty to some of our employees.
“We are committed to work on the integration with care and in the best interests of our employees. We believe this is the best way to ensure long term sustainability of the business.”
The as-yet unnamed firm will take ownership of stakes in Equinor’s Mariner, Rosebank and Buzzard fields and Shell’s Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion.
© Supplied by TeekayWhen asked about job uncertainty for Equinor’s UK staff a company spokesperson told Energy Voice: “We have around 300 people working with UKCS tasks and we are not planning any redundancies as they transfer to the new 50/50 integrated joint venture.”
The new joint venture is set to be based in Aberdeen with Shell bosses pushing for the joint venture to set up shop in the city center.
Equinor already has offices in the north-east of Scotland in the Primefour Business Park in Kingswells.
The Norwegian state-owned energy firm will retain ownership of its cross-border oil assets such as Utgard, Barnacle and Statfjord.
Both firms will retain their offshore wind portfolios with Equinor keeping a hold of Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank.
Shell will keep its interests in the Fife NGL plant, St Fergus Gas Terminal and floating wind projects under development, MarramWind and CampionWind.
The Equinor spokesperson added: “Our oil and gas trading, UK renewables business, CCS, gas storage, battery storage and the cross border fields producing from the UK into Equinor operated infrastructure on the Norwegian side, will remain under Equinor UK.”
Equinor and Shell are currently awaiting the result of a court hearing held last month in Edinburgh.
Rosebank, which will be handed over to the JV, is the largest untapped oilfield in UK waters and is currently the subject of a legal challenge in the Scottish courts.
The case concerns downstream emissions, or scope three emissions, and if the UK government considered the impact of them when granting consent for Equinor’s Rosebank oil field and Shell’s Jackdaw development.
Opedal said on the new business: “The UK basin is maturing and production naturally declining, the combination of portfolios and expertise will allow continued economic recovery of this vital UK resource.
“The new company is well-positioned to make substantial investments over the coming years, reduce production decline on the UK Continental Shelf and support the UK economy.”
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