Shell, Equinor Create Adura for Production in the North Sea

Global energy majors Shell and Equinor this week completed the formation of Adura, a 50-50 joint-venture that will become the largest independent producer in the UK’s North Sea. The newly formed company will oversee a portfolio of offshore assets formerly held by both firms, a shift aimed at optimizing production and long-term value in a mature basin.

Adura will assume interests in 12 producing oil and gas fields, including major assets such as Mariner, Rosebank, Buzzard, Shearwater, Penguins, and Gannet, along with several projects under development and a number of exploration licenses. The new company will be headquartered in Aberdeen and absorb a workforce of roughly 1,200 staff transferred from both parent firms.

Veteran energy executive Neil McCulloch was appointed CEO, bringing more than 30 years of sector experience. Under his direction, the companies said Adura aims to combine the technical capacity and asset base of both Shell and Equinor into a streamlined, cost-efficient operator.

Production forecasts for 2026 released by the companies anticipate output of over 140Mboe/d, placing Adura ahead of all other independent producers in the North Sea, according to analysis by energy consultancy Wood Mackenzie.

Shell and Equinor emphasized that the consolidation is intended to enhance long-term operational flexibility, reduce duplication, and deliver economies of scale in a basin where many legacy fields are in decline or approaching end-of-life.

Notably, the assets and activities outside the core joint venture, such as Equinor’s cross-border holdings, offshore wind, hydrogen and carbon storage projects, and Shell’s onshore gas terminals and Southern North Sea assets, remain with the parent companies. This structure allows both firms to retain strategic exposure to energy transition and diversified business lines while consolidating upstream hydrocarbon production under Adura.

Oil M&As in Mexico

According to industry observers, a wave of mergers and consolidations in the oil-field services industry is placing intense pressure on smaller contractors, particularly in Mexico. Many smaller firms depend on payments from PEMEX and have already faced severe cash-flow stress as contract delays accumulate.

These mergers place a significant pressure on smaller oilfield services which many times have to turn to acquisitions to survive. According to Citadel Financial Group, “(mergers) are putting tremendous pressure on service firms … This shift has turned the industry into a buyers’ market, with oilfield services competing for fewer contracts and facing significant pricing pressures,” leaving companies to deal with “shrinking customer bases, rising costs, and a slowing market.”