TotalEnergies, opens new tab said on Monday it will merge its oil assets in the British North Sea with NEO NEXT Energy, a partnership between Spain’s Repsol and HitecVision.
Total will take a 47.5% stake in the renamed NEO NEXT+ in exchange for its assets, the company said in a statement on Monday. Repsol will own 23.625% in the venture, while HitecVision will hold the remaining 28.875%.
NEO NEXT+ would have production of more than 250,000 barrels of oil equivalent a day in 2026, the statement said.
The deal continues a trend in recent years by European oil majors to combine assets in Britain’s North Sea, following Shell and Equinor’s merger in December 2024 and Ithaca Energy’s, opens new tab purchase of Italian Eni’s, opens new tab North Sea oil and gas producing assets.
The British government imposed a windfall tax in the wake of a 2022 surge in energy prices but analysts said mergers could hit tax revenue.
“While companies will be pushing for greater operating efficiencies and reduced costs, one of the key losers here is (British tax revenue and customs), with the combined entities likely to pay less tax to the UK government than they would do separately,” analysts at RBC said.
The deal is expected to be finalised during the first half of 2026, subject to regulatory conditions, the companies said.
The tie-up comes nine months after the merger between Repsol and NEO Energy.
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