TotalEnergies has agreed to merge its U.K. upstream operations with NEO NEXT Energy in a transaction that will create NEO NEXT+, expected to become the largest independent oil and gas producer in the United Kingdom.
Under the deal, TotalEnergies will hold a 47.5% stake in the expanded company, while HitecVision will own 28.875% and Repsol UK 23.625%. The transaction is subject to regulatory approvals and is expected to close in the first half of 2026.
NEO NEXT+ will combine assets from NEO Energy and Repsol UK, including interests in the Elgin/Franklin complex and the Penguins, Mariner, Shearwater and Culzean fields, with TotalEnergies’ UK portfolio, which includes its holdings in Elgin/Franklin as well as Alwyn North, Dunbar and Culzean.
The merged entity is projected to produce more than 250,000 barrels of oil equivalent per day in 2026, giving it scale to improve cash flow and develop a long-term position in the UK continental shelf.
“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.
“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,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies
TotalEnergies said the new ownership and asset base will position NEO NEXT+ to maximize portfolio value and deliver strong financial returns.