French oil major completes UK asset merger

Paris headquartered energy giant, TotalEnergies, recently finalised the merger of its upstream portfolio in the UK North Sea with the offshore gas and oil company, NEO NEXT.

Completion has resulted in a brand-new operating entity titled “NEO NEXT+”, effectively remodelling the competitive business scene of the United Kingdom Continental Shelf.

Under the agreement, TotalEnergies will keep a 47.5 per cent stake in the new enterprise, placing itself as the majority shareholder, while NEO NEXT’s joint owners HitecVision and Repsol UK hold 28.875 per cent 23.625 per cent respectively.

The newly formed firm will now become the UK North Sea’s largest independent producer of gas and oil, with estimated output for this year said to exceed 250,000 boe/d (barrels of oil equivalent per day).

An international operator, TotalEnergies also provides a wide range of oil-based lubricant products like extreme pressure (EP) grease, turbine oil, mould release oil, refrigeration compressor oil and spindle oil via its own brand, Total Lubricants.

The recent transaction combines TotalEnergies’ upstream assets in the UK with NEO NEXT’s robust portfolio, producing an independent scaled operator specifically engineered to enhance operational efficiency, unlock synergies and improve cash flow generation.

The consolidation agreement reflects a wider trend among major energy companies to retain strategic exposure while rationalising portfolios.

Describing the deal, CEO for TotalEnergies, Patrick Pouyanné, hailed the move as a continuation of the company’s long-term commitment to the UK’s energy sector. He emphasised TotalEnergies’ intent to make the most of its extensive experience operating in the North Sea while supporting to domestic supply.

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