MUSCAT: UK-based independent oil and gas firm Kistos Energy has announced the acquisition of stakes in a number of producing hydrocarbon concessions in the Sultanate of Oman in its first foray into the Middle East energy sector.

Publicly-traded Kistos, which is listed on the Alternative Investment Market (AIM), London, said it has entered into a binding agreement to acquire a 5% working interest in Block 9 and a 20% working interest in Blocks 3 & 4 from Mitsui E&P Middle East BV, both located onshore in the Sultanate of Oman.

According to Kistos, the transaction involves a consideration of $148 million, effective January 1, 2025, subject to standard closing adjustments. The amount will be paid at completion and financed using Kistos’s existing cash resources.

Both sets of concessions make a notable contribution to Oman’s annual oil and gas production. Block 9 remains a key contributor within Occidental Oman’s (Oxy) upstream portfolio with a 50% working interest.

Over decades of operation, Block 9 has produced several hundred million gross barrels of oil; the total gross output from the block since the start exceeds 823 million barrels.

The block includes important fields such as Safah and Wadi Latham in northern Oman, underlining its role among Oxy Oman’s major producing areas.

Blocks 3 & 4 are on-shore oil concession areas in eastern/central Oman, operated by CC Energy Development SAL (CCED) — with the partnership structure involving CCED (as operator), Tethys Oil and until recently, Mitsui E&P Middle East BV as co-venturers.

Over the years, Blocks 3 & 4 have contributed meaningfully to Oman’s oil output and as of late 2024, CCED announced that these blocks had delivered over 150 million barrels of oil since production began under their stewardship.

Announcing the transaction, Andrew Austin, Executive Chairman, Kistos, commented: “This acquisition marks a significant milestone for Kistos as we expand our footprint into a new and strategically important region, acquiring interests which align with our strategy of acquiring high-quality value-accretive assets, in both the near and long term”.

He added: “Effective January 1, 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”.

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