Spanish oil company Repsol and private equity-backed NEO Energy have agreed to merge their UK North Sea oil and gas businesses. The joint venture is expected to produce approximately 130,000 barrels of oil equivalent per day in 2025.

The deal strengthens both companies’ positions in the region, allowing for improved operational efficiency and long-term sustainability. Repsol and NEO Energy aim to leverage their combined expertise to optimize production and extend the lifespan of their North Sea assets.

The merger reflects a broader trend of consolidation in the energy sector as companies seek to navigate market volatility and evolving regulatory challenges.