French energy major TotalEnergies has decided to merge its upstream business in the United Kingdom with NEO NEXT Energy and become the largest shareholder in the expanded company.
In March this year, Spanish energy giant Repsol and Aberdeen-based NEO Energy announced they would be merging their UK assets into a new company named NEO NEXT Energy. At the time, it was said that the new firm would have an output of around 130,000 boepd in 2025.
The merger was the latest in a series of such moves by other operators in the North Sea. Ithaca Energy and Italian major Eni merged their UK upstream assets in October 2024, while Shell and Equinor also announced they were combining their North Sea assets. Also, Harbour Energy took over all upstream assets of Wintershall Dea.
Now, TotalEnergies has joined the merger scene by adding its UK North Sea assets to NEO NEXT, which will be renamed NEO NEXT+.
After the completion of the transaction, NEO NEXT+ will be jointly owned by TotalEnergies with a 47.5% stake, while HitecVision and Repsol UK will own 28.875% and 23.625% respectively.
The company will encompass a large and diverse asset portfolio, including NEO Energy’s and Repsol UK’s interests in the Elgin/Franklin complex and the Penguins, Mariner, Shearwater, and Culzean fields.
TotalEnergies will add its interests in the Elgin/Franklin complex and the Alwyn North, Dunbar, and Culzean fields.
According to the French firm, NEO NEXT+ will become the largest independent oil and gas producer in the UK with a production of over 250,000 barrels of oil equivalent per day in 2026.
“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,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.
Completion of the transaction is subject to customary conditions, including regulatory approvals, and is expected during the first half of 2026.
