Shell is set to move its North Sea headquarters to offices in the heart of Aberdeen city centre.
The Anglo-Dutch major has been in its current offices, a well-known landmark at an industrial estate in Tullos, south of the city centre, since 1973.
It plans to move staff to the Silver Fin Building on Union Street, although a relocation date has yet to be set.
The lease will begin in 2022 and timing of the move “will be confirmed in due course”.
Shell said the new building will give staff a “modern workplace, fit for the future as we reinvigorate the business for the energy transition”.
The move comes after Shell said it would cut 330 jobs from its UK upstream unit over the next two years as part of a restructuring.
The company said it is eager to play its part in the regeneration of Aberdeen city centre as it builds back from the coronavirus pandemic.
Shell opened its first North Sea offices in Union Street in 1965.
Simon Roddy, senior vice president, UK upstream for Shell, said: “This is great news for our staff and for our future as a key player in the North Sea’s energy transition.
“We are working on exciting projects and technologies like carbon capture and storage and hydrogen production.
“This is the right move for our teams as we help shape that lower-carbon future, supporting the UK’s journey to net zero, while continuing to provide the energy the country relies on through the transition.”
Jenny Laing, leader of Aberdeen City Council, said: “As the city emerges from the unprecedented effects of the Covid-19 pandemic, the council has been accelerating work on the City Centre Masterplan and providing the necessary assurance and confidence to business and investors that Aberdeen is building back better.
“Grade A office accommodation will help retain existing and attract new businesses — we need the people who work here to also spend time in our shops, bars, restaurants and public spaces.
“Shell’s announcement of its relocation to Silver Fin is a positive for the city and signals their confidence in Aberdeen and the city centre to other businesses and investors," Laing said.
The future of the Tullos site is unclear.
Shell marked 50 years of production in the North Sea in 2018.