TotalEnergies has agreed to merge its UK upstream business with NEO NEXT Energy to create an expanded, independent oil and gas producer in the UK, named NEO NEXT+.
NEO NEXT Energy is a joint venture (JV) between Norwegian private equity firm HitecVision and Spanish multi-energy company Repsol.
The expanded company will combine TotalEnergies’ UK upstream assets – Alwyn North, Dunbar and Culzean – with NEO Energy’s and Repsol UK’s interests in the Elgin/Franklin complex, Penguins, Mariner, Shearwater and Culzean fields.
The completion of the transaction is anticipated in the first half of 2026, subject to customary conditions including regulatory approvals.
Upon closing, NEO NEXT+ will operate as a JV, with TotalEnergies as the major shareholder with a 47.5% stake, alongside HitecVision with 28.9% and Repsol UK with 23.6%.
TotalEnergies UK will also retain up to $2.3bn of decommissioning liabilities related to its legacy assets, supporting the combined entity’s cash flows.
TotalEnergies chairman and CEO Patrick Pouyanné 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 recognised 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+ is set to become a large-scale independent oil and gas producer in the UK, with a focus on the UK Continental Shelf (UKCS).
The new entity is expected to have more than 250,000 barrels of oil equivalent per day (boepd) of production by 2026.
NEO NEXT said the deal follows its recent acquisition of Gran Tierra North Sea and bp’s interest in the Culzean field, as well as the previously announced merger with Repsol UK in March 2025.
NEO NEXT executive chair and HitecVision senior partner John Knight said: “As a leading global offshore operator, TotalEnergies adds significant operational capabilities across project management, especially in high-pressure/high-temperature gas production operations and a global experience of offshore operations.
“NEO NEXT+ intends to continue to play a leading role in ownership consolidation activity in the UKCS for many years to come.
“The enlarged NEO NEXT+ business also has an enhanced portfolio of potential near-term development opportunities,” Knight added.
Meanwhile, TotalEnergies and its partners in the Mozambique LNG project are reportedly set to provide additional equity to replace the previous funding from British and Dutch agencies, representing around 10% of the total external financing.