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French energy giant TotalEnergies is set to merge its upstream business with NEO NEXT, creating what is said to be the largest independent oil & gas producer in the UK.
The partners have signed an agreement under which TotalEnergies will merge its upstream business with NEO NEXT and become the leading shareholder in the expanded company, to be renamed NEO NEXT+, with a 47.5% ownership.
After completion of the transaction, NEO NEXT+ will be jointly owned by TotalEnergies, HitecVision (28.875%) and Repsol UK (23.625%). The firm’s asset portfolio includes NEO Energy and Repsol UK’s interests in the Elgin/Franklin complex and the Penguins, Mariner, Shearwater and Culzean fields, enriched by TotalEnergies’ UK upstream assets, notably including its interests in the Elgin/Franklin complex and the Alwyn North, Dunbar and Culzean fields.
The French company said that with this move, NEO NEXT+ will become the largest independent oil & gas producer in the UK with a production of over 250,000 barrels of oil equivalent per day in 2026.
Completion of the transaction is subject to customary conditions, including regulatory approvals and is expected during the first half of 2026.
“This transaction demonstrates the long-lasting commitment of TotalEnergies towards the UK oil and gas sector and its energy security. As the new largest shareholder of NEO NEXT+, we are excited to bring along our recognized track record as a leading operator in the UK North Sea, where we have been present for more than 60 years,” said Patrick Pouyanné , Chairman and CEO of TotalEnergies.
“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+, that will enhance the cash flow generation of the Company as soon as it is closed.”
Of note, Aberdeen-based full-cycle energy business New European Offshore (NEO Energy) completed its strategic merger with Repsol Resources UK, a subsidiary of Spanish energy giant Repsol, this July. The combined group has been renamed NEO NEXT Energy, 55% owned by NEO and 45% by Repsol UK.