TotalEnergies has completed its merger with Neo Next in a move that sees the French supermajor end its time as a UK operator.
The deal, initially announced in December, confirms TotalEnergies as the 47.5% owner of the firm now called Neo Next+.
The French oil giant shares ownership with Norway’s HitecVision, which accounts for 28.875% of the new independent operator, and Spain’s Repsol, which controls 23.625%.
Upon the completion of the deal, Neo Next+ declared itself ” the largest producer on the UK Continental Shelf,” a title rival Adura had previously claimed when it formed from the coming together of Shell and Equinor’s UK assets last year.
Patrick Pouyanné, chief executive of TotalEnergies, said: “The completion of this merger and the creation of Neo Next+ marks an important step in TotalEnergies’ long-term commitment to the UK oil and gas sector.
“While contributing to the country’s energy supply, the size and asset portfolio of Neo Next+ will foster synergies and enhance the cash flow generation of the company.”
Previously, Pouyanné had made it clear that he sought to vacate the UK, having said his company had “little future” in the UK.
Its choice to derisk its portfolio by divesting its UK assets may have came as little surprise, as in 2024 it was revealed that TotalEnergies was the UK North Sea’s largest taxpayer.
“As the new largest shareholder of Neo Next+, we are pleased to bring our extensive UK North Sea operational experience to the new company,” the TotalEnergies boss added.
TotalEnergies employs 600 people in the UK and has a base in Aberdeen’s Westhill.
The delivery of this deal now leaves Neo Next+ with three Granite City offices, Repsol’s building on Holburn Street, Neo Energy’s workspace in the same building Adura is based in, the Silver Fin, and the French firm’s Westhill base of operations.
John Knight, executive chair of Neo Next+, and senior partner of HitecVision, commented: “The Neo Next+ strategy is ‘Resilience, Yield and Growth’, and we intend to play a leading role on the UK Continental Shelf for many years to come.”
Repsol’s chief executive added his two cents when he said the combination of the three businesses made “a more competitive, more resilient North Sea operator with improved scale and a stronger operating footing”.
Josu Jon Imaz added: “The combined portfolio is better balanced and positioned to face a volatile environment, creating long-term value for our shareholders.”
In July last year, Repsol combined its UK business with the HitecVision-backed Neo Energy.
At the time, HitecVision controlled the majority of the firm, as it claimed a 55% stake in what was then called Neo Next.
However, rumours of yet more mergers quickly spread as TotalEnergies was tipped to join the newly formed firm at Aberdeen’s Offshore Europe conference in September.