French multinational oil and gas company TotalEnergies has signed an agreement with NEO NEXT Energy Limited (NEO NEXT) to merge its upstream business with NEO NEXT, making it the leading shareholder in the expanded entity.
The new company will be named NEO NEXT+, with TotalEnergies holding a 47.5% stake.
Upon completion of the transaction, NEO NEXT+ will be jointly owned by TotalEnergies (47.5%), HitecVision (28.875%), and Repsol UK (23.625%).
The company will inherit a large and diverse asset portfolio, including NEO Energy’s and Repsol UK’s interests in the Elgin/Franklin complex and the Penguins field.
With TotalEnergies as its leading shareholder, NEO NEXT+ is set to become the largest independent oil and gas producer in the UK, with production expected to exceed 250,000 barrels of oil equivalent per day by 2026.
The company will be well-positioned to maximize the value of its portfolio, deliver strong financial returns, and ensure long-term sustainability and resilience for its oil and gas operations.
“This transaction demonstrates TotalEnergies’ long-standing commitment to the UK oil and gas sector and its energy security. As the new largest shareholder of NEO NEXT+, we are excited to bring 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 NEO NEXT+ portfolio, enhancing the company’s cash flow generation as soon as the deal closes,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
Completion of the transaction is subject to customary conditions, including regulatory approvals, and is expected in the first half of 2026.
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