Repsol Resources UK and independent E&P company NEO Energy have merged to create NEO NEXT Energy Limited, the companies announced on Thursday.
The combined entity will be owned by Repsol E&P Group (45%) and NEO UK (55%) and is positioned to become one of the largest producers in the UK Continental Shelf with output of approximately 130,000 boepd in 2025, according to the companies’ projections.
The merger was first announced in March 2025. With the completion of the transaction, NEO NEXT intends to pursue growth through the development of its existing asset portfolio and further M&A deals.
“Repsol contributes operational capabilities in production, development and decommissioning activities, which will be combined with NEO Energy’s expertise in financial and commercial matters. We believe this combined business has many more opportunities for profitable growth in the basin and beyond,” said Francisco Gea, Repsol’s executive managing director of exploration and production.
“The benefits of synergies from consolidation will create much stronger value creation, profit and cash flow yield for shareholders, and more options for capital allocation decisions well into the next decade,” added executive chair of NEO NEXT John Knight.
Repsol Resources UK holds participating interests in 48 oil and gasfields in the UK North Sea, while Neo Energy’s portfolio includes stakes in producing fields such as Penguins, Culzean, Gannet, Shearwater, Britannia Area and Elgin Franklin.