Houlihan Lokey Advises Equinor
Houlihan Lokey is pleased to have supported Equinor and Shell in creating the U.K.’s largest oil and gas company. Equinor U.K. Ltd. (Equinor) and Shell U.K. Ltd. (Shell) have agreed to join forces to combine their U.K. offshore oil and gas assets and expertise to form a new company, which will be the U.K. North Sea’s largest producer. The incorporated joint venture will be set up to sustain domestic oil and gas production and security of energy supply in the U.K.
On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%), two leading global energy companies with decades of experience operating in the U.K. North Sea. With the once prolific basin now maturing and production naturally declining, the combination of portfolios and expertise will allow continued economic recovery of this vital U.K. resource.
The new company will invest to provide a long-term sustainable future for the individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the U.K. Based in Aberdeen, the heart of the nation’s energy sector, the joint venture will include Equinor’s equity interests in Mariner, Rosebank, and Buzzard; and Shell’s equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair, and Schiehallion. A range of exploration licences will also be part of the transaction.
Both Equinor and Shell are proud to continue the development of the North Sea as investing partners rather than individual operators, opening a new chapter in which they will remain significant players in the U.K. energy sector.
Equinor’s Executive Vice President for Exploration and Production International, Philippe Mathieu, said, “Equinor has been a reliable energy partner to the U.K. for over 40 years, providing oil and gas, developing the offshore wind industry, and advancing decarbonisation. 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 U.K.’s energy supply.”
Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, commented, “Domestically produced oil and gas is expected to have a significant role to play in the future of the U.K.’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 U.K. homes, the power for industry and the secure supply of fuels people rely on.”
Houlihan Lokey acted as the exclusive financial advisor to Equinor.
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