TotalEnergies SE and NEO NEXT Vitality Ltd, just lately created by Repsol UK Ltd and HitecVision AS, have entered right into a deal to mix their exploration and manufacturing belongings in the UK and thereby create what they are saying can be the highest producer within the UK North Sea.
France’s TotalEnergies would personal 47.5 % of the ensuing firm, to be referred to as NEO NEXT+. Norway-based HitecVision, a capital investor in Europe’s power sector, and Repsol UK will retain 28.88 % and 23.63 % respectively, in accordance with on-line statements by the events.
Repsol UK is 75 % owned by Spanish built-in power firm Repsol SA and 25 % owned by america’ EIG International Vitality Companions, which acquired a 25 % stake in Repsol SA’s total upstream portfolio in 2023 for $4.8 billion.
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HitecVision and Repsol UK had merged their North Sea belongings into NEO NEXT earlier this yr with pursuits of 55 % and 45 % respectively.
NEO NEXT+ would “embody a big and various asset portfolio together with notably NEO Vitality’s [HitecVision subsidiary] and Repsol UK’s pursuits within the Elgin/Franklin advanced and the Penguins, Mariner, Shearwater and Culzean fields, enriched by TotalEnergies’ UK upstream belongings, notably together with its pursuits within the Elgin/Franklin advanced and the Alwyn North, Dunbar and Culzean fields”, TotalEnergies stated in a press release on its web site.
“With TotalEnergies as its main shareholder, NEO NEXT+ will grow to be the most important impartial oil and gasoline producer within the UK with a manufacturing over 250,000 barrels of oil equal per day in 2026, ideally positioned to maximise the worth of its portfolio, ship robust monetary returns and guarantee a long-term sustainable and resilient future for its oil and gasoline enterprise”, TotalEnergies stated.
TotalEnergies’ upstream portfolio within the UK averaged 121,000 barrels of oil equal a day (boed) final yr, accounting for about 27 % of the UK continental shelf’s gasoline manufacturing, the assertion famous.
NEO NEXT stated individually, “The addition of TotalEnergies UK’s operated high-quality producing belongings will strengthen NEO NEXT’s stability sheet, reinforce its operational capabilities and help its growth actions, making certain a long-term sustainable and resilient future for its oil and gasoline enterprise within the UK”.
“TotalEnergies UK may even retain as much as $2.3 billion of the decommissioning liabilities associated to its legacy belongings, enhancing the money flows of the mixed enterprise”, NEO NEXT added.
The events count on to finish the merger within the first half of 2026, topic to customary situations.
NEO NEXT government chair and HitecVision senior companion John Knight stated, “As a number one international offshore operator, TotalEnergies provides vital operational capabilities throughout undertaking administration, particularly in high-pressure/high-temperature gasoline manufacturing operations and a worldwide expertise of offshore operations”.
“The enlarged NEO NEXT+ enterprise additionally has an enhanced portfolio of potential near-term growth alternatives”, Knight added.
Repsol SA chief government Josu Jon Imaz stated, “With complementary shareholder strengths and a broader, balanced portfolio below higher operational management, we will probably be well-positioned to compete and adapt within the UK North Sea. With this deal, we proceed to optimize our international asset portfolio with a concentrate on high-margin initiatives to maintain enterprise scale within the medium and long run and improve shareholder worth”.
TotalEnergies chair and chief government Patrick Pouyanné stated, “This transaction demonstrates the long-lasting dedication of TotalEnergies in direction of the UK oil and gasoline sector and its power safety. As the brand new largest shareholder of NEO NEXT+, we’re excited to deliver alongside our acknowledged observe report as a number one operator within the UK North Sea, the place we’ve got been current for greater than 60 years”.
To contact the writer, e-mail jov.onsat@rigzone.com
