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Repsol (OTCQX:REPYY) (OTCQX:REPYF) is in talks to merge its UK North Sea oil and gas business with private equity-backed NEO Energy, with a deal likely to be announced in the coming weeks, Reuters reported on Friday.
A merger would create a company with production of more than 110,000 boe/day, making it one of the largest producers in the aging basin.
Repsol Resources UK (OTCQX:REPYY) (OTCQX:REPYF) produced almost 39,000 boe/day at the end of 2022, and NEO Energy has interests in 25 fields in the North Sea, where it produces ~80,000 boe/day.
The company also had a tax loss position of $3.7 billion, according to its latest filing, and the Labor Party, which has a big lead in polls ahead of next week's British election, has promised to raise taxes on the sector, which are currently at a rate of 75%, one of the highest in the world.