Wedoany.com Report-Dec.14, TotalEnergies has signed an agreement to combine its UK upstream oil and gas activities with NEO NEXT, forming an enlarged independent producer to be known as NEO NEXT+.

Upon completion, TotalEnergies will hold 47.5% of the new company, becoming the largest shareholder. The remaining stakes will be owned by HitecVision (28.875%) and Repsol UK (23.625%).

The expanded portfolio of NEO NEXT+ will include NEO Energy's existing assets, Repsol UK's interests in the Elgin/Franklin complex and the Penguins, Mariner, Shearwater and Culzean fields, together with TotalEnergies' UK North Sea assets, notably its shares in the Elgin/Franklin complex and the Alwyn North, Dunbar and Culzean fields.

The merged entity is projected to become the UK's largest independent oil and gas producer, with expected production exceeding 250,000 barrels of oil equivalent per day in 2026.

The transaction remains subject to regulatory approvals and other standard conditions, with closing anticipated in the first half of 2026.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, stated: "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."

He added: "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 deal builds on the merger completed in July 2025 between Aberdeen-based NEO Energy and Repsol Resources UK, which created NEO NEXT Energy with ownership of 55% by NEO and 45% by Repsol UK.

With the addition of TotalEnergies' assets and expertise, NEO NEXT+ is positioned to strengthen operational efficiency and support continued development of the UK Continental Shelf.