UK-based Kistos has signed a binding farmout agreement under which its wholly owned subsidiary, Kistos Energy, will acquire a 30% non-operated working interest in the Abbey and Baker gas developments in the UK Southern North Sea.
The stake is being acquired from Petrogas North Sea, a UK oil and gas exploration and production company and a subsidiary of Petrogas E&P UK. The two assets are part of the UK Seaward Production Licences.
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Petrogas will remain the operator of the fields and hold a 70% working interest following completion of the transaction.
The deal, which also includes a 30% share in the related infrastructure, is set to add around nine million barrels of oil equivalent (mboe) of net proved and probable (2P) reserves to Kistos’ portfolio.
This figure is expected to take the group’s pro forma 2P reserves to roughly 59mboe, up from 49.2mboe as of 30 June 2026, upon a final investment decision (FID) anticipated in 2027.
Plans for the Abbey and Baker fields call for the development of mainly gas resources, with around 98% of reserves consisting of gas.
First production is targeted for 2029, with an estimated net plateau output of about 4,000 barrels of oil equivalent per day (boepd) to Kistos.
Overall, gross production across the development is anticipated to peak at around 18,000boepd.
The planned development includes four wells tied back subsea to a nearby existing platform, allowing export through the UK National Transmission System.
Both fields are situated in the UK Southern Gas Basin in roughly 40m of water.
Kistos executive chairman Andrew Austin said: “This value-accretive acquisition adds a high-quality, gas-weighted development to our UK portfolio at an attractive entry point.
“The UK will continue to depend on domestic gas supply for many years to come, and Abbey and Baker provide Kistos with long-term gas production, building on our existing North Sea gas business.
“We are delighted to be partnering again with Petrogas, an operator we know well and whose technical work on these fields has been of a very high standard. We look forward to working with them to bring the development through to first gas.”
The Baker field, located in Block 47/3f about 5km north-west of Abbey, was discovered in 2024, while Abbey in Block 47/3i was successfully appraised in 2025.
Engineering studies for the fields have been completed, and a draft Field Development Plan and Environmental Statement were submitted in July 2026.
Completion of the acquisition is subject to consent from the North Sea Transition Authority (NSTA) and other customary conditions.
Financial details and further terms will be announced once the transaction closes, which is expected before the end of 2026.
The reserve estimates have been prepared under the Petroleum Resource Management System guidelines.
Petrogas has had operatorship of the Abbey and Baker fields since 2022. In September 2026, Kistos secured a Royal Decree by the Sultanate of Oman relating to its acquisition of onshore Blocks 3 and 4 (Afar & Ghunaim) in Oman from Mitsui E&P Middle East.
