TotalEnergies, NEO NEXT to merge UK upstream operations

TotalEnergies has agreed to merge its UK upstream concern with NEO NEXT Energy to make an expanded, autarkic lipid and state shaper successful the UK, named NEO NEXT+.

NEO NEXT Energy is simply a associated task (JV) betwixt Norwegian backstage equity steadfast HitecVision and Spanish multi-energy institution Repsol.

The expanded institution volition harvester TotalEnergies’ UK upstream assets – Alwyn North, Dunbar and Culzean – with NEO Energy’s and Repsol UK’s interests successful the Elgin/Franklin complex, Penguins, Mariner, Shearwater and Culzean fields.

The completion of the transaction is anticipated successful the archetypal fractional of 2026, taxable to customary conditions including regulatory approvals.

Upon closing, NEO NEXT+ volition run arsenic a JV, with TotalEnergies arsenic the large shareholder with a 47.5% stake, alongside HitecVision with 28.9% and Repsol UK with 23.6%.

TotalEnergies UK volition besides clasp up to $2.3bn of decommissioning liabilities related to its bequest assets, supporting the combined entity’s currency flows.

TotalEnergies president and CEO Patrick Pouyanné said: “This transaction demonstrates the long-lasting committedness of TotalEnergies towards the UK lipid and state assemblage and its vigor security.

“As the caller largest shareholder of NEO NEXT+, we are excited to bring on our recognised way grounds arsenic a starring relation successful the UK North Sea, wherever we person been contiguous for much than 60 years.

“TotalEnergies’ accordant absorption connected moving low-cost and low-emissions operations volition beryllium instrumental successful delivering worldly economies of standard wrong the caller portfolio of NEO NEXT+, that volition heighten the currency travel procreation of the institution arsenic soon arsenic it is closed.”

NEO NEXT+ is acceptable to go a large-scale autarkic lipid and state shaper successful the UK, with a absorption connected the UK Continental Shelf (UKCS).

The caller entity is expected to person much than 250,000 barrels of lipid equivalent per time (boepd) of accumulation by 2026.

NEO NEXT said the woody follows its caller acquisition of Gran Tierra North Sea and bp’s involvement successful the Culzean field, arsenic good arsenic the antecedently announced merger with Repsol UK successful March 2025.

NEO NEXT enforcement seat and HitecVision elder spouse John Knight said: “As a starring planetary offshore operator, TotalEnergies adds important operational capabilities crossed task management, particularly successful high-pressure/high-temperature state accumulation operations and a planetary acquisition of offshore operations.

“NEO NEXT+ intends to proceed to play a starring relation successful ownership consolidation enactment successful the UKCS for galore years to come.

“The enlarged NEO NEXT+ concern besides has an enhanced portfolio of imaginable near-term improvement opportunities,” Knight added.