Slaughter and May advises Repsol E&P on $1.05 billion sale to NEO Energy Holding Limited

Repsol E&P is combining its UK upstream oil and gas business with NEO UK to create NEO NEXT, a new venture that is expected to be one of the largest independent oil and gas companies in the region with more than 130,000 boe/d of combined 2025 production.
The deal is a strategic consolidation rather than a cash sale: on completion, Repsol E&P will hold 45% of the merged entity and NEO Energy Holding Limited 55%. Repsol E&P will also retain a funding commitment of up to US$1.8 billion, representing about 40% of decommissioning liabilities tied to its legacy assets.
Closing is targeted for Q3 2025, subject to customary conditions including regulatory approvals. The combination is targeting synergies of more than US$1 billion, and Repsol E&P will continue to provide decommissioning security for existing Repsol UK group legacy assets after closing.

Repsol E&P is combining its UK upstream oil and gas business with NEO UK to create NEO NEXT, a new venture that is expected to be one of the largest independent oil and gas companies in the region with more than 130,000 boe/d of combined 2025 production.
The deal is a strategic consolidation rather than a cash sale: on completion, Repsol E&P will hold 45% of the merged entity and NEO Energy Holding Limited 55%. Repsol E&P will also retain a funding commitment of up to US$1.8 billion, representing about 40% of decommissioning liabilities tied to its legacy assets.
Closing is targeted for Q3 2025, subject to customary conditions including regulatory approvals. The combination is targeting synergies of more than US$1 billion, and Repsol E&P will continue to provide decommissioning security for existing Repsol UK group legacy assets after closing.

Deal Overview