Shell and Equinor have announced plans to combine their oil and gas assets in the North Sea to form a new company.
The offshore deal – which is subject to regulatory approval – would see the creation of the largest oil and gas producer in the North Sea, the energy firms said.
Shell said there would be no job losses as a result.
The new company will be based in Aberdeen.
Shell predicted the move could “enhance” the longevity of UK oil and gas jobs.
It employs around 1,000 people in oil and gas roles in the UK, while Equinor employs around 300 people in similar jobs.
Anyone who spends most of their time working on Shell and Equinor’s North Sea assets – such as oil rigs – will move to the new company, said Zoe Yujnoch, director of Shell’s integrated gas and upstream business.
He said the deal could result in an “increasingly more prosperous” mix, adding: “From an employee perspective, I think it could really increase the diversity of career choices, but I would also argue, the longevity of his career.”
Equinor said the joint venture would include its equity interests in Mariner, Rose Bank and Buzzard, and Shell’s equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion.
A range of exploration licenses will also form part of the transaction.
Philip Mathew, Equinor’s Executive Vice President of Exploration and Production International, said: “Equinor has been a trusted energy partner for the UK for over 40 years, supplying oil and gas, developing the offshore wind industry. is, and is driving decarbonisation.
“This new body will play a vital role in securing the UK’s energy supply.”
The company will be a 50-50 joint venture.