TotalEnergies announced merging its upstream business with NEO NEXT Energy Limited, creating the UK’s largest independent oil and gas producer. TotalEnergies will hold a 47.5% stake in the new entity, which will be renamed NEO NEXT+. The combined company will have assets in the North Sea, projecting a production capacity of over 250,000 boe/d by 2026.

TotalEnergies’ CEO highlighted the company’s commitment to the UK oil and gas sector, emphasizing low-cost and low-emissions operations. The merger aligns with industry trends in the North Sea, focusing on high-margin assets while ensuring continued production. TotalEnergies has been operating in the UK for over 60 years, contributing 27% of gas production on the UK Continental Shelf.

The transaction between TotalEnergies and NEO NEXT Energy Limited is subject to regulatory approvals and expected to close in the first half of 2026. The move aims to create economies of scale within the new portfolio, emphasizing sustained production from existing infrastructure. The merger reflects a strategic shift in the North Sea oil and gas sector towards consolidation for increased efficiency and profitability.

Read more at Yahoo Finance: TotalEnergies Secures Leading Stake in New UK Energy Powerhouse