TotalEnergies and NEO NEXT Energy have completed the previously announced merger of their UK North Sea upstream oil and gas assets, resulting in the formation of NEO NEXT+.
The deal was announced in December 2025.
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NEO NEXT Energy is a joint venture between Norwegian private equity firm HitecVision and Spanish energy company Repsol.
The ownership of NEO NEXT+ is divided among TotalEnergies with 47.5%, HitecVision with 28.875%, and Repsol UK with 23.625%.
NEO NEXT+ will comprise a substantial and varied collection of assets, incorporating NEO Energy’s and Repsol UK’s stakes in fields such as Elgin/Franklin, Penguins, Mariner, Shearwater, and Culzean.
This portfolio will be further enhanced by TotalEnergies’ UK upstream holdings, which notably include stakes in the Elgin/Franklin complex as well as the Alwyn North, Dunbar, and Culzean fields.
With this transaction, NEO NEXT+ is expected to be the largest independent oil and gas producer on the UK Continental Shelf (UKCS). It is anticipated to produce over 250,000 barrels of oil equivalent per day in 2026.
The integration of TotalEnergies UK’s operational assets is set to enhance NEO NEXT’s financial stability and operational capacity, supporting its ongoing development initiatives in the UK.
TotalEnergies UK assumes a significant portion of the decommissioning liabilities related to its former assets, amounting to up to $2.3bn. This move is expected to improve cash flow within the merged business.
TotalEnergies chairman and CEO Patrick Pouyanné said: “The completion of this merger and the creation of NEO NEXT+ marks an important step in TotalEnergies’ long‑term commitment to the UK Oil and Gas sector.
“While contributing to the country’s energy supply, the size and asset portfolio of NEO NEXT+ will foster synergies and enhance the cash flow generation of the company. As the new largest shareholder of NEO NEXT+, we are pleased to bring our extensive UK North Sea operational experience to the new company.”
Prior to this, TotalEnergies decided to redirect almost $1bn from its offshore wind initiatives in the US towards oil and natural gas projects in the country. This move comes after reaching an arrangement with the US Department of the Interior (DoI), permitting TotalEnergies to relinquish its former offshore wind leases in favour of concentrating on more economical natural gas ventures.
