Neo Energy and Repsol Resources announced late March their plan to merge their assets in a new UK entity, Neo Next, 55% owned by Neo. Regulatory approval is expected later this summer.
It will have “a large and diverse asset portfolio which is expected to generate material cashflows and provide a platform for organic and inorganic growth,” they said
Repsol will retain $1.8bn of the decommissioning liabilities related to its legacy assets, enhancing the cash flows of the combined business.
The parties said the merger would benefit from the key strengths of both shareholders, despite the tough conditions in the UK. Repsol contributes operational capabilities throughout the lifecycle while Neo brings expertise on financial and commercial matters. “We believe this combined business has many more opportunities for profitable growth in the basin and beyond,” Neo said.
URL: NEO Energy announces strategic merger with Repsol’s UK business – NEO Energy
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