French energy giant TotalEnergies said on Monday it will merge its North Sea oil and gas fields — which produce roughly 25% of the UK’s gas — into private equity-backed Neo Next Energy Limited to create the largest independent oil and gas producer in the UK.
Neo Next Energy is a joint venture of HitecVision and Repsol.
TotalEnergies said it has signed an agreement with Neo Next Energy Limited under which TotalEnergies will merge its upstream business with Neo Next and become the leading shareholder in the expanded Neo Next, which will be renamed Neo Next+, with a 47.5% ownership.
Neo Next will be jointly owned by TotalEnergies (47.5%), HitecVision (28.875%) and Repsol UK (23.625%) and encompass a large asset portfolio including the interests of Neo Energy and Repsol UK in the Elgin/Franklin complex and the Penguins, Mariner, Shearwater and Culzean fields, and TotalEnergies’ UK upstream assets including its interests in the Elgin/Franklin complex and the Alwyn North, Dunbar and Culzean fields.
“With TotalEnergies as its leading shareholder, Neo Next+ will become the largest independent oil and gas producer in the UK with a production over 250,000 barrels of oil equivalent per day in 2026, ideally positioned to maximize the value of its portfolio, deliver strong financial returns and ensure a long-term sustainable and resilient future for its oil & gas business,” said TotalEnergies.
Patrick Pouyanné, chairman and CEO of TotalEnergies, said: “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.”
Neo Next Energy said: “Neo Next Energy, HitecVision and Repsol’s joint venture, today announces a strategic deal with TotalEnergies’ to merge their UK offshore oil & gas production businesses.
“The transaction will cement Neo Next’s position as the leading operator and producer in the UK Continental Shelf (UKCS) with an expected 2026 production of over 250,000 barrels of oil equivalent per day. Upon 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.”