Kistos Holdings PLC mentioned Tuesday it has entered right into a binding cope with Mitsui & Co Ltd to purchase the Japanese diversified firm’s stakes in Blocks 3, 4 and 9 onshore Oman, marking its entry into the Center East.
Mitsui, by way of Mitsui E&P Center East BV, will divest 20 p.c in Blocks 3 and 4 and 5 p.c in Block 9 to London-based explorer and producer Kistos for $148 million, Kistos mentioned in a inventory submitting.
It expects the acquisitions to contribute 9,000-10,000 barrels of oil equal per day (boepd) web, with liquids comprising about 91 p.c, to its manufacturing this yr. Primarily based on operator estimates as of the beginning of 2025, the property would add 25.6 million barrels of oil equal (MMboe) web to Kistos’ confirmed and possible (2P) reserves, Kistos mentioned.
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“The acquisition equates to a valuation of roughly $5.80/boe of 2P reserves”, it mentioned.
Block 9, in northwestern Oman, is operated by Warren Buffett-backed Occidental Petroleum Corp with a 50 p.c stake. Block 9 comprises the manufacturing Safah and Wadi Latham fields. The Gulf nation’s state-owned OQ SAOC owns 45 p.c.
Blocks 3 and 4, in jap Oman, are operated by Lebanon’s CC Vitality Improvement SAL with a 50 p.c curiosity. Sweden’s Tethys Oil AB holds 30 p.c. Kistos famous seven fields have been put onstream in Blocks 3 and 4, which span about 29,000 sq. kilometers (11,196.95 sq. miles).
“Kistos’ entry into the Center East provides geographical and onshore manufacturing diversification to the corporate’s current portfolio”, Kistos mentioned. “Representing an evolution within the firm’s M&A [merger and acquisition] technique, the acquisition aligns with the board’s core ambition of pursuing property which have robust near-term manufacturing with vital improvement and exploration upside”.
Kistos govt chair Andrew Austin mentioned, “Our entry into the MENA [Middle East and North Africa] area represents an essential step ahead in our mission to construct a resilient, future-facing vitality firm. It not solely enhances our current portfolio within the North Sea but additionally supplies a platform for long-term development and enhanced money move”.
“Efficient 1 January 2025, this acquisition will improve our reserves to 50 MMboe and is predicted to ship a cloth uplift in Kistos’ manufacturing in 2026 to roughly 20,000 boepd”, Austin added.
“Whereas we proceed to think about the North Sea for additional acquisitions, we view this foundational step into the MENA area as a strategy to diversify our portfolio, permitting us to broaden the alternatives we have a look at, doubtlessly unlocking future synergies by way of additional growth within the area”.
The completion of the acquisitions is topic to customary regulatory and accomplice approvals, Kistos mentioned.
To contact the writer, electronic mail jov.onsat@rigzone.com
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