TotalEnergies Secures Leading Stake in New UK Energy Powerhouse

December 08, 2025

TotalEnergies announced an agreement to merge its upstream business with NEO NEXT Energy Limited, a move set to create the United Kingdom’s largest independent oil and gas producer.

Under the terms of the transaction, the French energy major will become the leading shareholder in the expanded entity, which will be renamed NEO NEXT+. TotalEnergies will hold a 47.5% stake in the new company. The remaining shares will be held by private equity firm HitecVision, with 28.875%, and Repsol UK, with 23.625%.

The consolidation brings together a diverse portfolio of assets in the North Sea, a mature basin where operators are increasingly seeking economies of scale to maintain profitability and manage late-life field operations. The combined entity will encompass interests in the Elgin/Franklin complex, as well as the Penguins, Mariner, Shearwater, Alwyn North, Dunbar, and Culzean fields.

According to TotalEnergies, the expanded company is projected to have a production capacity of more than 250,000 barrels of oil equivalent per day (boe/d) by 2026. This scale positions NEO NEXT+ as a significant player in the region, overtaking other independent producers in terms of daily output.

“This transaction demonstrates the long-lasting commitment of TotalEnergies towards the UK oil and gas sector and its energy security,” said Patrick Pouyanné, chairman and CEO of TotalEnergies. “TotalEnergies’ consistent focus on running low-cost and low-emissions operations will be instrumental in delivering material economies of scale within the new portfolio.”

The merger aligns with broader industry trends in the North Sea, where major integrated energy companies are rationalizing their portfolios to focus on high-margin assets while ensuring continued production from existing infrastructure. TotalEnergies has operated in the U.K. for more than 60 years and currently accounts for approximately 27% of gas production on the U.K. Continental Shelf.

The transaction is subject to customary closing conditions, including regulatory approvals. The companies expect to finalize the deal during the first half of 2026.

Oilprice.com