Repsol and HitecVision Merge UK Operations with TotalEnergies in North Sea
- NEO NEXT Energy merges with TotalEnergies' UK offshore business, forming NEO NEXT+.
- The merger targets 250,000 barrels of oil equivalent per day by 2026.
- TotalEnergies will hold a 47.5% stake, retaining up to $2.3 billion in decommissioning liabilities.
- Transaction completion is expected in the first half of 2026, pending regulatory approvals.
Merger Announcement
NEO NEXT Energy, a joint venture between HitecVision and Repsol, has announced a strategic merger with TotalEnergies' UK offshore oil and gas production businesses. This merger will establish NEO NEXT+ as a leading operator in the UK Continental Shelf (UKCS), with a projected production of over 250,000 barrels of oil equivalent per day by 2026.
Ownership and Financials
Under the terms of the agreement, TotalEnergies UK will acquire a 47.5% shareholding in NEO NEXT. The remaining ownership will be divided between HitecVision with 28.875% and Repsol with 23.625%. TotalEnergies will also retain up to $2.3 billion of decommissioning liabilities related to its legacy assets, which is expected to enhance the cash flows of the combined business.
Operational Impact
The merger will integrate TotalEnergies UK's high-quality producing assets, strengthening NEO NEXT's balance sheet and operational capabilities. This move is aimed at ensuring a sustainable and resilient future for its oil and gas operations in the UK.
Timeline and Approvals
The completion of the transaction is subject to approvals from relevant authorities and regulatory consents, with an expected finalization during the first half of 2026.
Source: Repsol