Top 10 Best Oil and Gas Companies in Shetland Islands

Shetland: The Northern Gateway to North Sea Energy

Few places in Britain have been shaped by oil and gas as much as the Shetland Islands. When the first North Sea discoveries came in during the early 1970s, this remote archipelago between mainland Scotland and Norway suddenly found itself next to some of the most valuable reserves in Europe. The Sullom Voe Terminal, opened in the late 1970s, became one of the largest oil terminals in Europe. Lerwick, Scalloway and Sella Ness grew into busy supply and logistics hubs.

Today the industry looks different. Mature East of Shetland fields are being decommissioned. New developments in the deep waters West of Shetland are extending the basin's life, and gas from the Laggan-Tormore area flows through the Shetland Gas Plant. The companies below form the backbone of that activity. Together they account for jobs, investment and technical expertise that reach every corner of the islands.

How We Selected These Companies

This list looks at each company's operational presence in or around Shetland, its role in key infrastructure, its long-term investment commitments, its safety and environmental reputation, and how much it adds to the local economy. It includes operators, terminal owners and the specialist service providers that keep offshore operations running.

The Top 10 Oil and Gas Companies in Shetland Islands

1. EnQuest

EnQuest took over operatorship of the Sullom Voe Terminal and has spent years making the site leaner, more efficient and ready for future energy uses. The company also operates the Magnus field to the north of the islands. Its focus on extending the life of late-life assets has made it a central player in Shetland's energy story. It has also put forward plans to repurpose parts of the terminal for lower-carbon activities.

2. TotalEnergies

TotalEnergies operates the Shetland Gas Plant next to Sullom Voe. The plant processes gas from the Laggan, Tormore, Edradour and Glenlivet fields before it is exported to the mainland. The development opened up a new gas province West of Shetland and remains one of the most technically advanced subsea-to-shore projects in UK waters.

3. BP

BP has a long history in the region. It played a founding role at Sullom Voe and continues to lead major West of Shetland developments, including the Clair field and the Schiehallion area redeveloped through the Glen Lyon FPSO. BP's investment in Clair Ridge showed how much life is still left in the basin when modern recovery technology is used.

4. Equinor

Equinor is the operator of Rosebank, one of the largest undeveloped fields on the UK Continental Shelf. It lies roughly 130 kilometres north-west of Shetland. The project has drawn wide attention for its scale, its planned FPSO solution and the debate it has prompted about the UK's energy security and transition goals.

5. Ithaca Energy

Ithaca Energy holds a significant stake in Rosebank and has built a broad UK North Sea portfolio through acquisitions. As one of the largest independent producers on the UK shelf, it gives West of Shetland projects financial weight and operational experience.

6. Shell

Shell's Penguins redevelopment, east of Shetland, swapped ageing infrastructure for a modern floating production, storage and offloading vessel. The project shows how operators are reworking older fields with new technology instead of abandoning them early.

7. Peterson Energy Logistics

Peterson has run supply base operations in Lerwick for decades. It handles quayside logistics, warehousing, waste management and marine support for offshore installations. Its local workforce and fast turnaround times make it a trusted partner for operators working in harsh northern waters.

8. Lerwick Port Authority

Lerwick Port Authority does not produce hydrocarbons, but it is essential to the sector. Its deep-water facilities at Dales Voe have become a leading UK centre for offshore decommissioning. Large platform topsides are brought ashore there for dismantling and recycling, which gives Shetland a valuable role in the industry's end-of-life phase.

9. Shetland Islands Council Marine Operations

As harbour authority for Sullom Voe, the council's marine operations team provides pilotage, towage and port management for tankers calling at the terminal. Its long safety record in a challenging environment has been central to the terminal's continued operation.

10. Malakoff

Malakoff is a Lerwick-based marine and engineering company that supports vessels, offshore contractors and the energy sector with fabrication, repair and technical services. Its slipway and workshops give the industry a dependable local option for urgent repairs, so work does not have to wait on mainland yards.

Key Industry Trends Shaping Shetland's Oil and Gas Sector

The industry around Shetland is going through a period of major change. Several trends stand out:

• Decommissioning growth: As East of Shetland fields reach the end of production, safe removal and recycling of infrastructure is becoming a sector of its own.
• West of Shetland development: Deep-water fields such as Clair and Rosebank are where most new investment is going.
• Energy transition planning: Sullom Voe and the surrounding area are being looked at for hydrogen production, carbon capture and links with offshore wind.
• Electrification: The new transmission link to the mainland grid opens up the possibility of lower-emission power for future offshore operations.
• Local skills retention: Operators are working with training providers so that Shetland's experienced workforce can move into new energy roles.

Why Shetland Remains Strategically Important

Shetland's location is its greatest asset. It sits close to both the East and West of Shetland basins and has sheltered deep-water harbours, decades of oil and gas infrastructure, and a skilled workforce. Few places can match that combination. The islands also have a reputation for strong community engagement. Shetland's oil-era agreements created lasting community funds, a model that is often studied elsewhere.

Choosing the Right Partner

For businesses looking to work with or supply the Shetland energy sector, it is important to understand each company's role. Operators like BP, TotalEnergies and EnQuest set the strategic direction. Service firms like Peterson and Malakoff provide the practical support that keeps those operations running. Safety culture, environmental performance and local commitment are the most reliable ways to judge a long-term partner here.

Conclusion

The Shetland Islands remain one of the most important locations in the UK energy landscape. From the processing plants at Sullom Voe to the decommissioning yards near Lerwick, the companies on this list keep the islands' energy heritage alive and are preparing it for a lower-carbon future. Whether you are an investor, a supplier or a job seeker, these ten organisations offer a clear picture of where Shetland's oil and gas industry stands today and where it is likely to go next.