With the new year well and truly underway, the reality of 2026 is shaping up to see a surge in new oil and gas production as the world aims to meet increased demand across the international market. TotalEnergies has opted to invest a substantial amount of time and resources to establish a new upstream platform that will boost the upstream production of offshore oil and gas in the UK Continental Shelf.
The UK Continental Shelf is set to play a vital role in offshore production this year
With the world entering a new year loaded with new possibilities to increase offshore oil and gas production, TotalEnergies is aiming to expand its footprint in the United Kingdom market and further afield into the regional offshore sector by merging with Repsol and HitecVision to create a new company known as NEO NEXT+.
The previously established NEO NEXT company will absorb Total’s assets in the UK continental shelf and leverage the expertise of all the partners to establish a new platform to boost offshore production in one of the most volatile markets anywhere in the world.
The situation in Venezuela has the world on edge
Since Venezuela’s President was captured and arrested following a series of strikes in the nation’s capital, the oil and gas market has been in a tailspin, figuring out how the situation will affect the global upstream market. Venezuela has the largest oil and gas reserves anywhere in the world.
With Donald Trump stating the United States will run the government for the time being until new elections can be held, many in the energy market have questioned how this might affect the price of oil and gas. Regardless, the European sector has been boosted to a certain extent by the new NEO NEXT+ company.
NEO NEXT+ will expand upstream output capacity in the UK
Total will become the majority shareholder in NEO NEXT once all the relevant approvals have been granted, and the company can actually begin operations on the ground, so to speak. Total will hold a 47% interest in NEO NEXT+, while Repsol will hold 23% and HitecVision 28%.
With the addition of TotalEnergies’ assets in the region, NEO NEXT+ will become the largest independent oil and gas producer in the UK market, paving the way for the company to expand oil and gas production in a region that is starved of energy due to the lack of space and land.
“This transaction demonstrates the long-lasting commitment of TotalEnergies towards the UK oil and gas sector and its energy security. As the new largest shareholder of NEO NEXT+, we are excited to bring along our recognized track record as a leading operator in the UK North Sea, where we have been present for more than 60 years. – Patrick Pouyanné, Chairman and CEO of TotalEnergies
With data revealing that the global upstream market may be in for a tough year in 2026, NEO NEXT+ will serve a vital role in expanding upstream oil and gas production in the UK, and possibly further afield into Europe as well.
“TotalEnergies’ consistent focus on running low-cost and low-emissions operations will be instrumental in delivering material economies of scale within the new portfolio of NEO NEXT+, that will enhance the cash flow generation of the Company as soon as it is closed,” – Patrick Pouyanné, Chairman and CEO of TotalEnergies
Market uncertainty has crept into the global upstream sector
The world is on edge as the ongoing escalation of tensions in South America by the United States, as well as the ongoing war in Ukraine, has increased the volatility in the global market and created market uncertainty for the litany of energy companies around the world. Thankfully, NEO NEXT+ will leverage the vast expertise and assets to expand upstream oil and gas production in the UK.
