Neo Next Energy, a joint company between Repsol and HitecVision, has entered into a strategic agreement with TotalEnergies to merge its UK offshore oil and gas operations. The operation consolidates Neo Next’s position as a leading operator and producer on the United Kingdom Continental Shelf (UKCS), with production expected for 2026 to exceed 250,000 barrels of oil equivalent per day, as indicated by the Spanish company chaired by Anonio Brufau, in a press release sent to the National Stock Exchange Commission (CNMV).
This movement project in the European energy sector, in which Repsol and TotalEnergies participate, was facilitated by Five days two weeks ago. Both companies will be strong in the North Sea hydrocarbon exploration and production sector. More specifically, they will create the largest platform for upstream (this is what this first phase of research and development is called) in the waters of the United Kingdom, one of the regions with the largest oil and gas reserves in the world.
Repsol explains that once the transaction is finalized, the combined company will be called Neo Next+. The integration of the assets into TotalEnergies UK’s high-quality production will strengthen Neo Next’s balance, operational capabilities and development activities, ensuring a long-term sustainable and resilient future for its UK oil and gas business.
Under the terms of the agreement, TotalEnergies UK will acquire 47.5% of Neo Next. The combined company will therefore be owned by HitecVision (28.875%), TotalEnergies (47.5%) and Repsol (23.625%). Josu Jon Imaz, Repsol’s managing advisor, assured that the transaction “represents another big step forward in the execution of the Neo Next strategy. With the complementary strengths of the shareholders and a more expanded and balanced portfolio, with greater operational control, we will be well placed to compete and adapt to the complex surrounding the Mar del Norte”.
TotalEnergies UK will save up to $2.3 billion on asset decommissioning obligations, improving the combined company’s cash flow. The completion of the transaction, expected during the first half of 2026, is subject to approvals from the competent authorities and regulatory authorizations.
This concentration process increases operational capacity and profitability through synergies between the parties. Repsol and Neo Energy secured the balcony which joint venture This would generate synergies in excess of $1 billion (€929.1 million), “which will improve cash generation and profitability for shareholders,” Repsol said.
sum of force
Consolidation of these assets upstream This is a trend in the North Sea. Equinor and Shell will unify their oil activities in this region of the world in 2024. Previously, in 2023, Ithaca Energy and ENI were united. In these processes, Totalenergies fell to the margins because the potential alliance with Repsol and Neo Energy increases the value of the sum of resources.
With this new platform, the three companies have gained hydrocarbon production capacity and intensified the synergies already achieved by integrating Repsol and Neo Energy. joint venture formed that same summer.
In a press release launched at the end of July by the two companies, they assured that joint production planned for 2025 would be around 130,000 barrels of oil equivalent per day. The French energy giant details that it has been operating in the North Sea since 2023 with a daily production of around 142,000 barrels equivalent per day.
Its contribution is mainly gas, an energy increasingly valued due to its role in the transition towards achieving the zero emissions targets in 2050 set by most companies. However, TotalEnergies does not detail how much of this energy is in each country, because in addition to the United Kingdom, these assets are also found in the North Sea corresponding to other countries such as Norway, Denmark or the Netherlands.
Since the merger with Repsol UK in March 2025, Neo Next has announced three other transactions as part of this strategy: the acquisition of Gran Tierra North Sea Limited, the acquisition of BP’s stake in Culzean and now the merger with TotalEnergies UK.
“Neo Next+ intends to continue to lead the consolidation of business on the UK Continental Shelf for many years to come. Neo Next+ has a strengthened pipeline of potential development opportunities over a short period of time,” said John Knight, CEO of Neo Next and Senior Partner at HitecVision. “TotalEnergies brings significant operational capabilities in project management, particularly in high pressure and high temperature gas production operations, and overall experience in offshore operations.”
For his part, Patrick Pouyanné, Managing Director of TotalEnergies, declared that the movement “demonstrates TotalEnergies’ long-term commitment to the UK’s oil and gas sector and its energy security”.
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