TotalEnergies signed a deal with NEO NEXT to combine its UK Upstream business with NEO NEXT into an enlarged company called NEO NEXT+, making NEO NEXT+ the largest independent oil and gas producer in the United Kingdom. TotalEnergies would be the largest shareholder of the new entity with 47.5% ownership.
Completion is subject to all relevant regulatory approvals and is expected in the first half of 2026, at which time NEO NEXT+ would be jointly owned by TotalEnergies 47.5%, HitecVision 28.875%, and Repsol UK 23.625%. The expanded company would consolidate a broad portfolio of North Sea assets including NEO Energy's and Repsol UK's interests in the Elgin/Franklin, Penguins, Mariner, Shearwater and Culzean fields, as well as TotalEnergies-operated and non-operated interests in the Alwyn North, Dunbar and Culzean fields.
NEO NEXT+, with production forecasts of over 250,000 boed in 2026, will take its place among key players in the UK Continental Shelf, together with operators for whom the main preoccupations will still be cost efficiency, operational consolidation, and the resilience of their production.
The merger reflects the company's commitment to the UK energy sector in the long term, according to TotalEnergies Chairman and CEO Patrick Pouyanné. "Our recognized track record as a leading North Sea operator-focused on low-cost, low-emissions development-will be instrumental in driving economies of scale and strengthening cash-flow generation across this expanded portfolio," he said.
The companies believe that the merged structure will unlock operational synergies, enhancing financial returns and reinforcing energy security in the UK through a more resilient upstream platform.