Repsol, HitecVision to merge joint venture with TotalEnergies’ UK business

NEO NEXT Energy, HitecVision, and Repsol’s (REPYY) joint venture announces a strategic deal with TotalEnergies’ (TTE) to merge their UK offshore oil & gas production businesses. The transaction will “cement NEO NEXT’s position” as the leading operator and producer in the UK Continental Shelf, UKCS, with an expected 2026 production of over 250,000 barrels of oil equivalent per day. Upon completion, the combined company will be known as NEO NEXT+. Under the terms of the transaction, TotalEnergies UK will acquire a 47.5% shareholding interest in NEO NEXT. As a result, the combined business will be jointly owned by HitecVision, holding 28.875%, TotalEnergies, holding 47.5%, and Repsol, holding 23.625%. TotalEnergies UK will also retain up to $2.3 billion of the decommissioning liabilities related to its legacy assets, enhancing the cash flows of the combined business. Completion of the transaction remains subject to approvals from the relevant authorities and regulatory consents and is expected during the first half of 2026.