Banco Sabadell | According to press reports, Repsol is in talks with TotalEnergies to create the largest upstream platform in the North Sea, integrating assets in UK waters. The operation would be structured through Neo Next, the joint venture between Repsol (45%) and Neo Energy (55%), in which TotalEnergies would take a minority stake. The aim is to increase production capacity and generate synergies of more than $1 billion (€862 million). It is not yet known how many assets TotalEnergies could contribute. Sources from both companies declined to comment.
Assessment: News with little impact pending confirmation, which would make strategic sense for Repsol in terms of achieving operational improvements and maximising the value of upstream assets in the United Kingdom. We recall that Repsol’s current joint venture with Neo Energy, signed in March, is valued at approximately €1.7 billion, 4.5% capitalisation for the 45% controlled by Repsol (with a combined production of around 130,000 b/d by 2025, 10% of the total with its 45%), so a new partner with more assets as proposed would increase the valuation and improve efficiencies.
