TotalEnergies Announces Strategic Merger With NEO NEXT to Create UK’s Leading Independent Oil and Gas Producer
TotalEnergies has entered into a landmark agreement with NEO NEXT Energy Limited (NEO NEXT) that will reshape the landscape of the North Sea oil and gas sector. Under the terms of this significant transaction, TotalEnergies will merge its UK Upstream business with NEO NEXT and become the largest shareholder of the newly expanded entity. Following completion, the company will adopt the new name NEO NEXT+, signaling a powerful new chapter of development and growth in the United Kingdom’s offshore industry.
Upon completion of the transaction, NEO NEXT+ will be jointly owned by three major players in the energy sector: TotalEnergies will hold a leading 47.5% stake, HitecVision will possess 28.875%, and Repsol UK will maintain 23.625% ownership. This structure reflects a strong and diverse shareholder base with proven experience in offshore oil and gas operations, strategic development, and capital investment.
One of the most notable outcomes of the merger will be the creation of a significantly enlarged and diversified asset portfolio. NEO NEXT+ will combine the upstream assets currently operated by NEO Energy and Repsol UK, including key interests in well-established and high-performing fields. Among these are the Elgin/Franklin complex, Penguins, Mariner, Shearwater, and Culzean fields. These assets will be further enhanced by the integration of TotalEnergies’ UK portfolio, comprising its own stakes in the Elgin/Franklin complex in addition to shares in the Alwyn North, Dunbar, and Culzean fields.
This combined portfolio creates a powerhouse in the UK Continental Shelf (UKCS), positioning NEO NEXT+ as the largest independent oil and gas producer in the region. Production is projected to exceed 250,000 barrels of oil equivalent per day (boe/d) by 2026, marking a scale of operation capable of driving substantial financial returns, extending asset life, and contributing meaningfully to the United Kingdom’s long-term energy security objectives.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, highlighted the magnitude of this development and reaffirmed the company’s strategic dedication to the UK market:
“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 recognized 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.”
The new company will benefit significantly from TotalEnergies’ operational philosophy, which emphasizes cost efficiency, low-carbon performance, and prudent capital allocation. These strengths are expected to support optimized field development strategies and progressive emissions-reduction initiatives across the UKCS asset base. The combination of technical excellence, operational discipline, and increased scale positions NEO NEXT+ to navigate ongoing industry challenges while maintaining resilient growth potential.
The transaction remains subject to a number of customary conditions, including regulatory consent and partner approvals. TotalEnergies expects final closure to occur during the first half of 2026. Once completed, the merger will mark one of the most strategically important consolidations within the North Sea basin in recent years.
TotalEnergies in the UK: A Long-Standing Partner in Energy Development
TotalEnergies holds a rich history in the United Kingdom, tracing more than six decades of operational presence and collaborative development in the region. Today, the company employs more than 1,800 people across a wide spectrum of the energy value chain—from upstream production and gas logistics to renewable energy and power supply.
The company stands among the top oil and gas operators in the UK, responsible for operating approximately 27% of the UK Continental Shelf’s gas production. In 2024, TotalEnergies’ average daily equity production reached 121,000 boe/d, reflecting the company’s strong contribution to national energy availability and security.
Beyond traditional hydrocarbon operations, TotalEnergies is actively expanding its integrated energy approach within the UK. The company continues to implement its Integrated Power strategy, aimed at accelerating the transition toward cleaner energy while ensuring system reliability. This strategy is driven by a combination of renewable power generation and flexible gas-powered stations that balance intermittency in the national grid.
TotalEnergies’ UK renewable portfolio already includes 1.1 GW of gross installed capacity from projects such as the Seagreen offshore wind farm, one of the most significant offshore wind developments currently in service. In addition, the company maintains a 4.5 GW development pipeline across new offshore wind opportunities and solar energy projects. To further reinforce its energy capabilities, TotalEnergies owns a 50% stake in a 1.3 GW combined cycle gas turbine (CCGT), operated jointly with EPUKI, supporting balanced, secure electricity generation.
The company is also a leading national supplier of power and natural gas to businesses and public organizations. Its services extend into electric vehicle charging infrastructure and the marketing of a wide range of petroleum products, including lubricants, bitumen, aviation fuel, and specialty fluids. This broad portfolio demonstrates the company’s deeply integrated role in meeting the UK’s energy needs, both present and future.
A Strategic Path to a Lower-Carbon Yet Energy-Secure Future
As the UK continues navigating the complexities of the global energy transition, reliable domestic oil and gas production remains an essential component of national energy security and economic stability. By building NEO NEXT+ into the preeminent independent producer in the region, TotalEnergies and its partners are securing the operational scale, technical expertise, and financial resilience needed to maintain responsible production for decades ahead.
The merger underscores TotalEnergies’ strategy of balancing conventional energy operations with accelerated growth in low-carbon electricity solutions. This dual approach ensures continued support for UK households and industries while advancing climate-aligned development goals.
With the formation of NEO NEXT+, the UK North Sea is set to enter a new phase of optimized investment and operational collaboration—one that provides sustainable value for shareholders, strengthens domestic energy resilience, and supports a progressive pathway toward a balanced and secure energy future.
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