Investment company Kistos has agreed to acquire the entire issued and outstanding share capital of Tulip Oil Netherlands from Tulip Oil Holding in a $262.8m (€220m) deal.

Tulip Oil Netherlands holds a 60% operating stake in the Q10-A gas field in the Dutch North Sea.

It also has interests in other fields in the Dutch North Sea, including the Q10-B, Q11-B and M10/M11 discoveries, as well as other exploration and appraisal projects.

In a press statement, Kistos said: “Plans for the future developments of the assets being acquired by Kistos utilise wind and solar power, which will make Kistos one of the lowest CO₂/boe emitters of Scope 1 emissions from upstream operations in north-west Europe.”

Upon completion of the deal, Tulip Oil will become a shareholder and debtholder of Kistos. It will continue to be a 90% shareholder in Rhein Petroleum.

Kistos chairman Andrew Austin said that Tulip Oil’s assets have probably the lowest carbon footprint of any production assets in the North Sea.

Austin added: “To be producing gas, a vital transition fuel, from normally unmanned platforms powered by solar and wind is exactly what we set out to do.

“In addition, we see the potential for significantly increased production from discovered hydrocarbons within the licences being acquired by Kistos.”

The transaction, which includes up to $194.7m (€163m) of contingent payments and €5m ($5.9m) of warrants, is subject to customary conditions precedent.

The transaction’s total upfront consideration comprises a combination of cash, Kistos’ assumption of an existing bond instrument issued by Tulip Oil Netherlands Offshore, and the issue of a new debt instrument and the issue of equity in Kistos to the seller.

Tulip Oil chairman Leo Koot said: “With the recent exploration success in the Stieg 1 well, Rhein Petroleum will be Tulip Oil’s next chapter to advance.

“We plan to build a material business producing German oil for the German economy with a minimum carbon footprint.”