TotalEnergies will merge its UK Upstream assets with NEO NEXT to form NEO NEXT+, becoming the UK’s largest independent oil and gas producer.
TotalEnergies has entered into a significant strategic agreement with NEO NEXT Energy Limited (NEO NEXT) to consolidate and expand their presence in the United Kingdom’s upstream oil and gas sector. Under the terms of this agreement, TotalEnergies will merge its UK Upstream business with NEO NEXT, subsequently becoming the largest shareholder in the newly enlarged entity. Following the completion of the deal, the combined company will be renamed NEO NEXT+, reflecting its expanded scale, strengthened asset base, and enhanced operational capabilities. TotalEnergies will hold a substantial 47.5% ownership stake, positioning it as the dominant partner in the new venture.
Once the transaction concludes, NEO NEXT+ will be jointly owned by three major players: TotalEnergies with 47.5%, HitecVision with 28.875%, and Repsol UK with 23.625%. This ownership structure underscores the collaborative nature of the venture and brings together the combined technical expertise, financial resources, and long-standing operational experience of the three participating companies.
The enlarged NEO NEXT+ portfolio will include a broad and diverse collection of upstream assets spanning several key fields in the UK North Sea. These assets will integrate the existing holdings of NEO Energy and Repsol UK—such as their stakes in the Elgin/Franklin complex, as well as the Penguins, Mariner, Shearwater, and Culzean fields—with TotalEnergies’ UK Upstream interests. TotalEnergies will contribute its own significant stakes in fields including Alwyn North, Dunbar, Culzean, and its share of the Elgin/Franklin complex, further enhancing the combined company’s production capacity, operational efficiency, and long-term exploration potential.
With TotalEnergies emerging as the leading shareholder, NEO NEXT+ is expected to become the largest independent oil and gas producer in the United Kingdom by 2026. The combined venture is projected to exceed 250,000 barrels of oil equivalent per day in production, giving it both scale and resilience in a competitive and evolving market. The consolidation of expertise and resources will allow NEO NEXT+ to optimize the value of its asset base, strengthen its financial performance, and build a sustainable operational model capable of supporting long-term energy security in the UK.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, emphasized that this strategic move reflects the company’s unwavering commitment to the UK energy market, where it has maintained a strong presence for more than six decades. He highlighted that the merger will enable substantial cost efficiencies and emissions reductions as part of TotalEnergies’ low-cost, low-carbon operational approach. These efficiencies are expected to unlock greater economies of scale across the newly combined asset portfolio, enhancing cash flow generation soon after the transaction closes.
The completion of the transaction remains subject to customary closing conditions and regulatory approvals. The companies anticipate finalizing the deal during the first half of 2026, marking a major milestone for the UK’s offshore energy landscape.
