NiseriN/iStock via Getty Images
Repsol (OTCQX:REPYY) (OTCQX:REPYF) is in talks to merge its U.K. North Sea oil and gas business with private equity-backed NEO Energy, with a deal potentially to be announced within weeks, Reuters reported Friday.
A merger would create a company with production of more than 110K boe/day, making it one of the largest producers in the aging basin.
Repsol Resources UK (OTCQX:REPYY) (OTCQX:REPYF) produced nearly 39K boe/day at the end of 2022, and NEO Energy has interests in 25 fields in the North Sea, where it produces ~80K boe/day.
The company also had a tax loss position of $3.7B, according to its latest filing, and the Labour Party, which commands a large lead in polls ahead of Britain’s elections next week, has vowed to increase taxes on the sector, which are currently at a rate of 75%, one of the highest in the world.