Global integrated energy giant TotalEnergies has struck a landmark agreement with NEO NEXT Energy Limited to merge its UK Upstream business with NEO NEXT, creating the newly named NEO NEXT+, with TotalEnergies holding a 47.5% stake.

The deal positions NEO NEXT+ as the largest independent oil and gas producer in the UK, with production expected to surpass 250,000 barrels of oil equivalent per day by 2026.

The new company will be jointly owned by TotalEnergies (47.5%), HitecVision (28.875%) and Repsol UK (23.625%). Its portfolio will include a mix of high-value assets such as the Elgin/Franklin complex, Penguins, Mariner, Shearwater, Culzean, Alwyn North, and Dunbar fields.

“This transaction demonstrates the long-lasting commitment of TotalEnergies towards the UK oil and gas sector and its energy security. As the new largest shareholder of NEO NEXT+, we are excited to bring along our recognized track record as a leading operator in the UK North Sea, where we have been present for more than 60 years.

"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,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

Completion of the transaction is expected in the first half of 2026, subject to customary regulatory approvals.

TotalEnergies is also expanding its renewable and integrated power portfolio, including 1.1 GW from the Seagreen offshore wind farm and 4.5 GW under development in wind and solar projects.