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TotalEnergies and NEO NEXT to Merge UK Operations, Forming Largest Independent Oil Producer

Prime Highlights:

  1. TotalEnergies will merge its UK Upstream business with NEO NEXT to create NEO NEXT+, the UK’s largest independent oil and gas producer.
  2. The combined entity aims to deliver over 250,000 barrels of oil equivalent per day by 2026, strengthening energy security and cash flows.

Key Facts:

  1. Ownership of NEO NEXT+ will be shared: TotalEnergies 47.5%, HitecVision 28.875%, and Repsol UK 23.625%, pending regulatory approval.
  2. The merger is expected to be completed in the first half of 2026 and represents one of the largest consolidation moves in the UK Continental Shelf.

Background

TotalEnergies announced on Monday that it will merge its UK Upstream business with NEO NEXT, one of the major operators in the UK Continental Shelf. The merger will create a new enlarged entity called NEO NEXT+, which is set to become the UK’s largest independent oil and gas producer. The combined group is expected to deliver more than 250,000 barrels of oil equivalent per day by 2026.

The companies said the transaction is expected to be completed in the first half of 2026, subject to regulatory approvals. Once finalized, NEO NEXT+ will have a shared ownership structure, with TotalEnergies holding 47.5%, HitecVision owning 28.875% and Repsol UK holding 23.625%.

TotalEnergies chief executive Patrick Pouyanné said the merger demonstrates the company’s long-term commitment to the UK oil and gas sector and to the country’s energy security. He noted that TotalEnergies brings more than six decades of experience operating in the UK North Sea and looks forward to supporting the new platform as its largest shareholder.

According to both companies, the creation of NEO NEXT+ aims to build a strong and competitive business that can maximise the value of its assets. The merger is also designed to strengthen cash flows and ensure a resilient oil and gas portfolio in the years ahead.

Industry analysts say North Sea operators are focusing on improving efficiency and keeping production steady. By joining their assets, skills, and operations, NEO NEXT+ will help support the UK’s long-term energy needs.

NEO NEXT+ is becoming a key player in the UK Continental Shelf after the merger, one of the biggest consolidation moves in recent years.

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