TotalEnergies is reportedly in talks to sell off its UK assets to the newly formed Neo Next, the company formed earlier this year from Neo Energy’s takeover of Repsol’s UK business.
Both TotalEnergies and Neo Next have declined to comment on what they describe as “market speculation.”
According to Energy Voice, insiders believe the French supermajor is increasingly focused on other regions, having previously described the UK as holding “little future” for the group.
Analysts at Wood Mackenzie told the industry publication that a sale to Neo Next would, in theory, make strategic sense. Neo Next has significant tax losses available in the UK, and any deal could accelerate their use across a broader portfolio.
TotalEnergies, by contrast, is a top taxpayer in the North Sea and has no such shelter, making it particularly exposed to the UK’s 78% headline tax rate.
If the speculation proves accurate, it would represent one of the most significant shifts in UK North Sea ownership in recent years, further accelerating the trend of supermajors retreating and private equity-backed independents taking centre stage.