TotalEnergies has agreed a major restructuring of its UK operations that will see it merge its entire Upstream business with NEO NEXT, forming what will become the largest independent oil and gas producer in the country.
The expanded company, to be renamed NEO NEXT+, will be 47.5% owned by TotalEnergies, with HitecVision holding 28.875% and Repsol UK 23.625%.
The move consolidates a vast portfolio of North Sea assets, including interests in the Elgin/Franklin complex, Penguins, Mariner, Shearwater and Culzean, alongside TotalEnergies’ holdings in Alwyn North and Dunbar.
The new entity is expected to produce more than 250,000 barrels of oil equivalent per day in 2026, giving it significant scale as the basin continues to navigate fiscal uncertainty and the energy transition.
There is no news yet on what the transaction will mean for jobs, or whether it will lead to the consolidation of some roles.
Patrick Pouyanné, chairman and CEO of TotalEnergies, said the agreement “demonstrates the long-lasting commitment of TotalEnergies towards the UK oil and gas sector and its energy security".
He said: "As the new largest shareholder of NEO NEXT+, we are excited to bring along our recognised 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 companies say the combined structure will create a business with the critical mass needed to maximise value from mature assets, while maintaining investment and supporting the UK’s security of supply.
The deal remains subject to regulatory approval and is expected to complete in the first half of 2026.
TotalEnergies, which employs more than 1,800 people in the UK, currently operates around 27% of the UK Continental Shelf’s gas production and produced an average of 121,000 boe/d in 2024.