Kistos, an independent energy company, has signed a binding agreement to acquire a 5 per cent working interest in Block 9 and a 20% interest in Blocks 3 & 4 from Mitsui E&P Middle East, all located onshore in Oman.

The total consideration for the acquisition is $148 million, with an effective date of January 1, 2025, payable on completion from Kistos’ existing cash and subject to customary closing adjustments.

The acquisition is expected to add 25.6 million barrels of oil equivalent (mmboe) of 2P reserves net to Kistos and contribute approximately 9,000–10,000 boepd of additional production in 2025, primarily liquids (91%) with the remainder as gas.

The transaction is anticipated to be immediately cash-generative and represents a valuation of roughly $5.80 per boe of 2P reserves.

This move marks Kistos’ entry into the Middle East, diversifying its geographical footprint and onshore production base.

The acquisition aligns with the company’s M&A strategy, targeting assets with strong near-term production potential as well as development and exploration upside.

Block 9, operated by Occidental Petroleum, consists of two producing areas, while Blocks 3 & 4, operated by CCED, cover seven producing fields across approximately 29,000 km² in eastern Oman.

Both blocks operate under Omani Exploration and Production Sharing Agreements (EPSAs), which define concession terms, payment mechanisms, and conditions for exploration, appraisal, discovery, and extraction.

Completion of the acquisition is subject to standard governmental and regulatory approvals and partner consents.

Andrew Austin, Executive Chairman, 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: “Our entry into the MENA 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.”

He concluded: “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. On behalf of the Board, I would like to thank our shareholders for their continued support and look forward to sharing further updates as we continue to grow and evolve." -OGN/TradeArabia News Service