Shell said it hopes the joint venture, which is expected to produce more than 140,000 barrels of oil per day late next year, should be completed by the end of 2025.

“Domestically produced oil and gas is expected to have a significant role to play in the future of the UK’s energy system,” Zoe Yujnovich, Shell’s integrated gas and upstream director, said in a statement. “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.”

Equinor Executive Vice President for Exploration and Production International Philippe Mathieu said it has been a “reliable energy partner” in Britain for more than four decades, ranging from oil and gas exploration to developing the offshore wind industry.

“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. energy supply,” Mathieu said in a statement.

Biraj Borkhataria, an analyst with RBC Capital Markets said the joint venture should be a victory for both companies in regard to resources and “tax synergies.”

“In that vein, with the U.K. not seen as a major growth market, this combination appears to make strategic sense in that it allows two companies to pool resources and continue to grow while allocating less focus/capital to the region and follows recent moves by the likes of Eniin the country,” Borkhataria said, according to CNBC.