Slaughter and May is advising Repsol E&P on a strategic consolidation with NEO UK combining the two companies’ respective upstream oil and gas businesses in the UK. NEO UK is a private upstream company owned by NEO Energy Holding Limited (an investment vehicle managed by HitecVision).
On completion, the merged entity will be jointly owned by the Repsol E&P group (45%) and NEO Energy Holding Limited (55%). The transaction is subject to customary conditions precedent, including various regulatory approvals, and is expected to complete in Q3 2025.
The new joint venture will be one of the largest independent oil and gas companies in the region with an expected combined production of more than 130,000 boe/d in 2025.
The combined group is targeting synergies from the combination exceeding $1 billion. The Repsol E&P group will retain a funding commitment up to a nominal amount of $1.8 billion, representing approximately 40% of the decommissioning liabilities related to its legacy assets. The Repsol E&P group will continue to provide decommissioning security for existing Repsol UK group legacy assets.
Slaughter and May is working closely with Repsol’s in-house legal teams based in Madrid and Aberdeen, including Julieta Fernández Madero, Nadia Haghegh, Louise Cowie and Gemma Barbara, and Repsol’s M&A team based in Madrid including Juan Pablo Stelzer Serrate, Daniel Lara Luque, Marina Rojo Galán and Miguel Blanco Bello.
Madeline Dearman / Trainee