French oil major TotalEnergies is merging its oil assets in the North Sea with NEO Next Energy, a partnership between Spain’s Repsol and HitecVision.
The transaction will confirm NEO Next’s position as the largest operator and producer in the UK Continental Shelf (UKCS) with an expected 2026 production of over 250,000 barrels of oil equivalent per day.
It comes nine months after the merger between Repsol and NEO Energy and is the latest consolidation by companies that operate in the basin after the UK government imposed a windfall tax in the wake of a 2022 surge in energy prices.
On completion, the combined company will be known as NEO Next+. The addition of TotalEnergies UK’s operated high quality producing assets will strengthen NEO Next’s balance sheet, reinforce its operational capabilities and support its development activities, ensuring a long-term sustainable and resilient future for its oil and gas business in the UK.
TotalEnergies UK will acquire a 47.5% shareholding interest in NEO Next. As a result, the combined business will be jointly owned by HitecVision (28.875%), TotalEnergies (47.5%), and Repsol (23.625%).
TotalEnergies UK will also retain up to $2.3 billion of the decommissioning liabilities related to its legacy assets, enhancing the cash flows of the combined business.
Completion of the transaction remains subject to approvals from the relevant authorities and regulatory consents and is expected during the first half of 2026.
NEO Next+ said it intends to continue to play a leading role in ownership consolidation activity in the UK Continental Shelf (UKCS) for many years to come.
John Knight, executive chair of NEO Next, and senior partner at HitecVision, commented: “As a leading global offshore operator, TotalEnergies adds significant operational capabilities across project management, especially in high pressure / high temperature gas production operations and a global experience of oshore operations.”
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