The global oil and gas scene is witnessing a wave of consolidation moves through strategic mergers and acquisitions, especially in the United Kingdom (UK), where the windfall tax on oil and gas producers’ profits remains in force. The transformation across Britain’s hydrocarbon industry is gaining ground, spurred by Big Oil’s business combination steps.
Offshore Energies UK (OEUK) highlighted a month ago that the government’s own figures on gas security underline both a national energy security risk and the damage of its policies on North Sea energy. The National Energy System Operator (NESO) , the official energy system adviser, has warned that Britain could face a gas supply crisis by 2030; thus, the government should draw up plans to guard against this serious threat.
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NESO has also warned ministers to address an “emerging risk to gas supply security” that could mean homes and businesses going without gas during a prolonged period of cold weather. The warning came as the UK government rejected an industry proposal to reform the Energy Profits Levy (EPL), or windfall tax, rejecting £50 billion of investment for the UK and the chance to protect energy security, jobs and economic value.
OEUK claims that 1,000 jobs continue to be lost every month across the UK’s offshore energy industry and its supply chains as a result of the government’s decision to keep the EPL in place, which is interpreted to put thousands of jobs and billions in economic value and tax revenue at risk.
Britain is now set to import 80% of its oil and gas by 2030, which in Offshore Energies UK’s view increases its exposure to global market volatility and geopolitical risk, with implications for price stability and supply chain resilience.
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As energy policy uncertainty, demand pressures, net zero challenges, and fiscal woes shape the UK’s oil and gas landscape, consolidation has emerged as a popular trend during the course of 2025. Offshore-Energy.biz has made a recap of the some of the biggest industry consolidation moves that took place last year.
Oil majors such as Shell and Equinor were at the forefront of the consolidation wave in 2025 by merging their offshore oil and gas operations to bring to life what was described as the UK North Sea’s largest independent oil and gas producer, named Adura .
The incorporated joint venture , entailing a 50:50 ownership split between the two energy titans, encompasses megaprojects such as Rosebank and Penguins , assuming Equinor and Shell’s interests in 12 producing oil and gas assets and projects in execution, including the two previously mentioned alongside: Mariner , Buzzard , Shearwater , Gannet , Nelson , Pierce , Jackdaw , Victory , Clair , and Schiehallion .
The next consolidation move on Offshore Energy’s list is the one between NEO Energy and Repsol Resources UK , which created NEO NEXT Energy, as one of the largest independent oil and gas producers on the UK Continental Shelf (UKCS).
Months later, the newly created player struck a deal with TotalEnergies to merge its UK upstream operations, forming NEO NEXT+ , anticipated to establish the UK’s largest independent producer. The company will be jointly owned by TotalEnergies (47.5%), HitecVision (28.875%) and Repsol UK (23.625%).
The asset portfolio encapsulates NEO Energy and Repsol UK’s interests in the Elgin / Franklin complex and the Penguins, Mariner, Shearwater and Culzean fields, enlarged by TotalEnergies’ UK upstream assets, especially its interests in the Elgin/Franklin complex and the Alwyn North , Dunbar and Culzean fields.
The last consolidation step that made the cut on our list is Harbour Energy ’s play for all subsidiaries of Waldorf Energy Partners Limited (WEPL) and Waldorf Production Limited (WPL) , currently in administration, to augment its asset base in the UK sector of the North Sea. The completion is expected to occur during the second quarter of 2026.
Other memorable mentions entail Serica Energy ’s acquisition of Prax Upstream and the firm’s move to bring Spirit Energy ’s oil and gas portfolio into its fold, including stakes in the Cygnus , Clipper South , Greater Markham Area (GMA) , Eris , Ceres , and Galleon assets.