Canadian firm sheds UK business and stake in North Sea oil discovery

Aberdeen-based full-cycle energy business New European Offshore (NEO Energy) is set on expanding its oil and gas portfolio by picking up a new addition, thanks to Canada’s Gran Tierra Energy, which has taken steps to offload its UK subsidiary, Gran Tierra North Sea Limited (GTNSL) that holds an interest in an oil discovery.

The Canadian firm has set the wheels in motion to sell its wholly owned subsidiary to NEO Energy for a total consideration of $7.5 million. This entails GTNSL’s 100% equity interest in the license P2358, which includes the Serenity discovery on the United Kingdom Continental Shelf (UKCS).

Gran Tierra Energy expects the completion of the transaction, which is subject to certain customary conditions precedent, including consent from the North Sea Transition Authority, in the third quarter of 2025.

As the Serenity discovery is a potential future tie-back to the FPSO Bleo Holm, NEO believes this creates potential growth and development opportunities as part of its recently announced merger with Repsol Resources UK, which remains subject to approvals from the relevant authorities and regulatory consents.  

Upon completion, the combined firm, 55% owned by NEO and 45% by Repsol UK, will rebrand to NEO NEXT Energy, which is anticipated to become one of the largest producers in the region.