on Thursday announced plans to combine their British offshore oil and gas assets to create a jointly owned energy company.
The joint venture will be established in Aberdeen, Scotland in an effort to sustain fossil fuel production and the security of energy supply in the U.K. The companies target to complete the deal by the end of next year, subject to approvals. At that time, the incorporated company is set to become the U.K. North Sea's largest independent producer, Shell said.The company is expected to produce more than 140,000 barrels of oil equivalent per day in 2025.
"Domestically produced oil and gas is expected to have a significant role to play in the future of the UK's energy system," Zoë Yujnovich, integrated gas and upstream director at Shell, said in a statement. "The new venture will help play a critical role in a balanced energy transition providing the heat for millions of UK homes, the power for industry and the secure supply of fuels people rely on," Yujnovich added.Also on CNBC