French energy major TotalEnergies has agreed to merge its upstream business in the U.K. with NEO NEXT Energy, forming the largest independent oil and gas producer in the UK.
The company said the newly combined company will be the leading operator and producer in the U.K. with a production of over 250,000 barrels of oil equivalent per day in 2026.
NEO NEXT will be renamed NEO NEXT+. The merged company will be jointly owned by TotalEnergies with a 47.5 per cent stake, while HitecVision and Repsol UK will own 28.875 per cent and 23.625 per cent respectively.
NEO NEXT+ will bring together a large suite of North Sea assets, including NEO Energy’s and Repsol UK’s interests in the Elgin/Franklin complex and the Penguins, Mariner, Shearwater and Culzean fields, alongside TotalEnergies’ interests in Alwyn North, Dunbar, and Culzean.
Patrick Pouyanné, chairman and CEO of TotalEnergies, said the transaction highlights the company’s commitment towards the U.K. oil and gas sector.
“TotalEnergies’ consistent focus on running low-cost and low-emissions operations will be instrumental in delivering material economies of scale within the new portfolio of NEO NEXT+, which will enhance the cash flow generation of the company as soon as it is closed,” Pouyanné said.
Josu Jon Imaz, CEO of Repsol, said: “This merger with TotalEnergies UK marks another strong step forward in delivering Neo Next’s strategy.
“With complementary shareholder strengths and a broader, balanced portfolio under greater operational control, we will be well-positioned to compete and adapt in the UK North Sea.”
Completion of the transaction remains subject to regulator approvals and is expected in the first half of 2026.
