Shell announced it has terminated the planned divestment of its Southern North Sea gas portfolio to Viaro Energy after failing to secure regulatory approval and satisfactory commercial terms. The assets, which account for approximately 10% of Shell’s U.K. gas production and supply roughly 250 million standard cubic feet per day (mmscfd), will remain on Shell’s balance sheet. The decision reflects shifting market dynamics, including recent licensing delays in the North Sea Transition Authority’s decommissioning regime and sustained price volatility in European gas benchmarks. Shell said it will now pursue other options to optimize these fields, targeting break-even operating costs below $6 per boe and exploring partnerships to unlock synergies with its enlarged upstream footprint.

In collaboration with Petrobras, Shell has committed $18.6 million to launch the Carbon Countdown Initiative, aimed at quantifying soil and forest carbon stocks across Brazil’s Cerrado and Amazon biomes. The multi-year program will deploy remote sensing technologies and on-the-ground sampling at over 1,200 sites, with initial results expected by Q4 2026. Shell’s share of the funding represents the company’s largest single investment in nature-based solutions to date, bolstering its Scope 3 emissions reduction pathway. Petrobras will contribute expertise in geospatial analysis, while the initiative partners include local universities and the Brazilian Ministry of the Environment. Shell projects the data will inform national policy and support its ambition to achieve net-zero emissions by 2050.

The activist shareholder group Follow This, supported by more than 20 institutional investors managing over $150 billion in assets, has filed a resolution at Shell’s upcoming AGM calling for detailed disclosures on the company’s value generation plan in a scenario of declining global oil demand. The resolution requests analysis of capital allocation under a 1.5°C pathway, projected cash flows from renewable investments versus hydrocarbons through 2040, and contingency measures if oil volumes fall by up to 30%. Shell has previously committed to increasing low-carbon investment to $6–8 billion per year by 2025, but activists argue the current strategy lacks specificity on returns and risk mitigation should peak demand arrive before 2030.