The merger between Repsol Resources UK and NEO Energy has been completed, creating NEO NEXT Energy as one of the largest producers on the UK Continental Shelf (UKCS).
The joint venture is owned by Repsol E&P Group (45%) and NEO UK (55%), with a projected 2025 production of approximately 130,000 barrels of oil equivalent per day (boe/d).
This equity split reflects the contributions and strategic alignment of both parties in the creation of the new entity in the UKCS.
NEO NEXT will operate a highly diversified portfolio, including 11 production hubs and substantial undeveloped reserves.
“This combination creates a jointly governed business which will call upon the key strengths of both shareholders. Repsol contributes operational capabilities on production, development, and decommissioning activities which will be combined with NEO Energy expertise on financial and commercial matters.
“We believe this combined business has many more opportunities for profitable growth in the basin and beyond,” said Francisco Gea, Executive Managing Director of Exploration and Production at Repsol.
“The benefits of synergies from consolidation will create much stronger value creation, profit and cash flow yield for shareholders and more options for capital allocation decisions well into the next decade.
“But this company will also be very well positioned to choose both organic and inorganic growth. We will certainly look to be making more value accretive acquisitions. We have known Repsol E&P for many years and have the highest regard for them as a capable and reliable partner,” added John Knight, Executive Chair of NEO NEXT.