Shell PLC (SHEL) and Equinor ASA (EQNR) have officially completed their merger of UK offshore oil and gas operations, launching a new company called Adura. The joint venture went live on Monday and is positioned to become the dominant independent player in the North Sea.

This isn't just a simple asset swap. Both energy giants are combining decades of operational experience and a substantial portfolio of producing fields to create something bigger than either could manage separately. The goal? Squeeze more value out of aging North Sea assets by pooling resources and cutting costs in a basin that's been producing oil since the 1970s.

What Each Company Is Keeping

While the joint venture is substantial, both Equinor and Shell are holding onto certain strategic assets. Equinor will retain its cross-border assets—Utgard, Barnacle, and Statfjord—along with its entire offshore wind portfolio. The Norwegian company is also keeping its hydrogen, carbon capture and storage, power generation, battery storage, and gas storage assets separate from the deal.

Shell UK Limited, meanwhile, will keep its UK SEGAL system interests, which include the Fife NGL Plant, St Fergus Gas Terminal, Braefoot Bay facility, Bacton gas terminal, multiple Southern North Sea assets, the Howe asset, and several post-cessation assets.

Inside the Adura Deal

Adura is equally owned by Shell and Equinor, bringing together what both companies describe as the best of their North Sea knowledge. Headquartered in Aberdeen—the heart of the UK oil industry—the new company takes control of 12 producing and in-development assets from both parent companies, plus exploration licenses. Staff from both organizations have been transferred to ensure the new venture doesn't lose the technical expertise that makes these operations work.

The numbers are impressive: Adura is projected to produce over 140,000 barrels of oil equivalent per day in 2026, which would make it the top UK North Sea producer. That's a significant consolidation in a region where production has been declining for years as fields mature and new investment becomes harder to justify.

Shell's Executive Vice President for Conventional Oil & Gas, Rich Howe, framed the move as historic: "Forming the largest independent producer together with Equinor is an historic moment for our business and the UK energy industry. With an exceptional asset base and industry-leading expertise, Adura is well-positioned to lead in this mature basin."

Philippe Mathieu, Equinor's Executive Vice President for Exploration and Production International, echoed that sentiment: "Adura represents a new chapter in the UK North Sea, bringing together two strong portfolios and decades of experience. With the focus, scale and operational flexibility needed to succeed, the company is positioned for long-term impact."

Shell's Recent Moves

Beyond the Adura launch, Shell has been busy securing its global energy position. The company's subsidiary, Shell International Trading Middle East Limited FZE, recently signed a 15-year deal with Abu Dhabi National Oil Company (ADNOC), further expanding its liquefied natural gas portfolio.

Price Action: SHEL shares were up 0.33% at $74.01 in premarket trading on Monday.