General – Agreement to Consolidate
Repsol announced a landmark agreement to consolidate its UK North Sea upstream business with NEO Energy Group through a share-for-share combination.
Under the deal, NEO said it will hold a 55% stake in the combined business, which will be renamed NEO NEXT Energy, with Repsol retaining the remaining 45%.
The resulting joint venture will position itself as a robust and diversified UK North Sea-focused oil and gas company that is poised to become one of the largest independent producers in the UK Continental Shelf.
This strategic combination will significantly enhance the operational scale, efficiency, and growth prospects of the combined entity, while also reinforcing Repsol E&P’s long-term commitment to maximizing the value of its UK assets.
The transaction will immediately position the new joint venture as a market leader in the UKCS, with a projected 2025 production of approximately 130,000 barrels of oil equivalent per day (boe/d).
The combined company’s enhanced and competitive positioning is expected to drive substantial growth and long-term value creation for shareholders.
NEO said completion of the deal is subject to approvals from UK authorities and securing regulatory consents, which it expects to achieve during the third quarter of 2025.
