Kistos Holdings PLC said Tuesday it has entered into a binding deal with Mitsui & Co Ltd to buy the Japanese diversified company’s stakes in Blocks 3, 4 and 9 onshore Oman, marking its entry into the Middle East.
Mitsui, through Mitsui E&P Middle East BV, will divest 20 percent in Blocks 3 and 4 and five percent in Block 9 to London-based explorer and producer Kistos for $148 million, Kistos said in a stock filing.
It expects the acquisitions to contribute 9,000-10,000 barrels of oil equivalent per day (boepd) net, with liquids comprising about 91 percent, to its production this year. Based on operator estimates as of the start of 2025, the assets would add 25.6 million barrels of oil equivalent (MMboe) net to Kistos’ proven and probable (2P) reserves, Kistos said.
“The acquisition equates to a valuation of approximately $5.80/boe of 2P reserves”, it said.
Block 9, in northwestern Oman, is operated by Warren Buffett-backed Occidental Petroleum Corp with a 50 percent stake. Block 9 contains the producing Safah and Wadi Latham fields. The Gulf country’s state-owned OQ SAOC owns 45 percent.
Blocks 3 and 4, in eastern Oman, are operated by Lebanon’s CC Energy Development SAL with a 50 percent interest. Sweden’s Tethys Oil AB holds 30 percent. Kistos noted seven fields have been put onstream in Blocks 3 and 4, which span about 29,000 square kilometers (11,196.95 square miles).
“Kistos’ entry into the Middle East adds geographical and onshore production diversification to the company’s existing portfolio”, Kistos said. “Representing an evolution in the company’s M&A [merger and acquisition] strategy, the acquisition aligns with the board’s core ambition of pursuing assets that have strong near-term production with significant development and exploration upside”.
Kistos executive chair Andrew Austin said, “Our entry into the MENA [Middle East and North Africa] region represents an important step forward in our mission to build a resilient, future-facing energy company. It not only complements our existing portfolio in the North Sea but also provides a platform for long-term growth and enhanced cash flow”.
“Effective 1 January 2025, this acquisition will increase our reserves to 50 MMboe and is expected to deliver a material uplift in Kistos’ production in 2026 to approximately 20,000 boepd”, Austin added.
“While we continue to consider the North Sea for further acquisitions, we view this foundational step into the MENA region as a way to diversify our portfolio, allowing us to broaden the opportunities we look at, potentially unlocking future synergies through further expansion in the region”.
The completion of the acquisitions is subject to customary regulatory and partner approvals, Kistos said.
To contact the author, email jov.onsat@rigzone.com
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