UK-based energy company Kistos has been granted 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.
Formal completion of the sale and purchase agreement with Mitsui is expected soon.
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This will address the final completion adjustments and accounting requirements for the period since signing the original agreement, following the transfer of legal ownership.
Kistos confirmed that the acquisition of Block 9 (Suneinah) from Mitsui remains ongoing. The transaction is following a separate schedule due to its exploration and production sharing agreement (EPSA) framework.
The total consideration for the acquisition of Blocks 3, 4 and 9 is $148m (£109.38m), with an effective date of 1 January 2025, according to Kistos.
The deal was announced in December 2025. Mitsui’s decision to sell the onshore assets is driven by its efforts to reconfigure its portfolio.
The transaction gives Kistos a 20% working interest in Blocks 3 and 4 and a 5% working interest in Block 9. Blocks 3 and 4 are operated by CC Energy Development, while Block 9 is operated by Occidental Petroleum.
Through this, Kistos will add 25.6 million barrels of oil equivalent (mboe) in proved and probable (2P) reserves. The assets are expected to raise 2025 production by approximately 9,000–10,000 barrels of oil equivalent per day, mainly liquids.
Located in eastern Oman, Blocks 3 and 4 span roughly 29,000km² and produce from seven fields. Block 9, which produces from two areas, is in north-western Oman and is spread over 4,000km².
Kistos expects the transaction to be immediately cash-generative, stating that the acquisition represents a value of roughly $5.80 per barrel of oil equivalent.
Kistos executive chairman Andrew Austin said: “Royal Decree on Blocks 3 and 4 marks Kistos’ official entry into the Middle East and North Africa (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.”
