Kistos has received confirmation of a Royal Decree from Oman, completing the transfer of legal ownership of onshore Blocks 3 and 4 from Mitsui E&P Middle East to the independent energy company.

Formal completion of the sale and purchase agreement will follow shortly, with remaining adjustments and accounting formalities to be finalised.

Completion of the acquisition of Block 9 is continuing under a separate timeline due to its EPSA framework.

Kistos agreed to acquire Blocks 3, 4 and 9 for $148 million, with an effective date of January 1, 2025.

The transaction is expected to add 25.6 million barrels of oil equivalent (mmboe) of 2P reserves and increase Kistos’ 2025 production by approximately 9,000-10,000 barrels of oil equivalent per day, primarily comprising liquids.

The company expects the acquisition to be immediately cash-generative, with an implied acquisition value of about $5.80 per boe.

The deal forms part of Kistos’ strategy of unlocking value from its existing portfolio and pursuing value-accretive mergers and acquisitions. 

Andrew Austin, Executive Chairman of Kistos, commented: "Royal Decree on Blocks 3 & 4 marks Kistos' official entry into the MENA region, with the overall transaction with Mitsui in Oman doubling the Company's current production and 2P reserves, providing geographical diversification to our portfolio and a platform for further growth." -OGN/TradeArabia News Service