The merger between Repsol Resources UK and Neo Energy has been completed, forming the newly named group Neo Next, which is now one of the largest producers on the UK Continental Shelf (UKCS).

The joint venture is owned 45% by Repsol E&P Group and 55% by Neo UK, with an expected production of around 130,000 barrels of oil equivalent per day (boe/d) in 2025.

Francisco Gea, Executive Managing Director of Exploration and Production at Repsol, stated: “This combination creates a jointly governed business leveraging the key strengths of both shareholders. Repsol brings operational expertise in production, development, and decommissioning, which will be complemented by Neo Energy’s financial and commercial expertise. We believe this combined entity offers significant opportunities for profitable growth both within the basin and beyond.”

John Knight, Executive Chair of Neo Next, added: “This is an excellent deal for all stakeholders. Our strategy centers on ‘Resilience, Yield, and Growth.’ The combined company has greater scale, diversity, and opportunities for cost consolidation and portfolio optimization, providing resilience amid challenging conditions in the UK. Synergies from consolidation will drive stronger value creation, profit, and cash flow for shareholders, alongside greater flexibility for capital allocation over the coming decade. We are also well positioned to pursue both organic and inorganic growth, including value-accretive acquisitions. We have known Repsol E&P for many years and hold them in the highest regard as a capable and reliable partner.”

The joint venture is owned 45% by Repsol E&P Group and 55% by Neo UK. This equity split reflects the contributions and strategic alignment of both parties in creating a market-leading entity on the UK Continental Shelf (UKCS), with projected production of approximately 130,000 barrels of oil equivalent per day (boe/d) in 2025.