Repsol and HitecVision merge their oil and gas businesses with TotalEnergies in the United Kingdom

Repsol and HitecVision announced this Monday the merger of its oil and gas exploration and production businesses in the UK offshore with TotalEnergies, creating a leading operator in this sector with expected production by 2026 of more than 250,000 barrels of oil equivalent per day. In a statement, Repsol explained that the operation It will be carried out through the company NEO NEXTcurrently in the hands of Repsol and HitecVision, which will change its name to NEO NEXT+ to enter TotalEnergies, which will acquire 47.5% of the new company. Once the transaction is definitively closed, HitecVision will have 28.875% of NEO NEXT+ and Repsol, 23.625%.

Additionally, TotalEnergies will retain up to $2.3 billion in decommissioning obligations of its assets, which will improve NEO NEXT+’s cash flows and strengthen its balance sheet, the note explains. For his part, the CEO of Repsol, Josu Jon Imaz, has considered the merger as “another big step forward” in the NEO NEXT strategy and in the optimization of the Spanish group’s global portfolio. Imaz has pointed out.

Mergers in the United Kingdom

The CEO of Repsol added that “with this agreement, Repsol continues to optimize its global asset portfoliofocusing on high-margin projects to maintain the scale of the business in the medium and long term and improve value for shareholders.” For his part, the executive president of NEO NEXT and senior partner of HitecVision, John Knight, has highlighted that the arrival of TotalEnergies will provide “significant operational capabilities,” especially in high pressure and temperature gas projects and offshore operations.

Knight recalled that this operation joins three other recent acquisitions, from the merger with Repsol UK in March 2025—Gran Tierra North Sea Limited, BP’s participation in Culzean and the merger itself with TotalEnergies UK—, which consolidate the company’s growth strategy. “NEO NEXT+ intends to continue leading the consolidation of activity on the continental shelf of the United Kingdom for many years. NEO NEXT+ has a strengthened portfolio of potential short-term development opportunities,” he added.

For his part, the CEO of TotalEnergies, Patrick Pouyanné, stated that the operation reflects the company’s commitment to the British energy sector and with security of supply. “TotalEnergies’ continued focus on developing low-cost, low-emission operations will be instrumental in achieving significant economies of scale within the new NEO NEXT+ portfolio, which will bolster cash flow generation as soon as the transaction closes,” he said.