Kistos has signed a binding agreement to acquire a 5% working interest in Block 9 and a 20% working interest in Blocks 3 and 4, onshore in Oman, from Mitsui E&P Middle East.
Block 9 is operated by Occidental Petroleum and comprises two producing areas.
Blocks 3 and 4, operated by CCED, comprise seven producing fields and cover around 29,000km² in eastern Oman.
These assets operate under Oman’s exploration and production sharing agreements (EPSAs), which outline concession terms, payment mechanisms and operational conditions.
The transaction, with an effective date of 1 January 2025, is valued at $148m, subject to customary closing adjustments.
It is expected to be immediately cash-generative for Kistos.
Through this acquisition, Kistos aims to enter the Middle East and North Africa (MENA) upstream energy sector. The company intends to fund the transaction consideration from existing cash.
Kistos executive chairman Andrew Austin said: “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.
“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.”
The acquisition would add an estimated 25.6 million barrels of oil equivalent in proved and probable reserves net to Kistos.
It would add nearly 9,000–10,000 barrels of oil equivalent per day net to Kistos this year, with around 91% being liquids and the remainder gas.
Last year, Kistos announced the acquisition of EDF Energy (Gas Storage), which includes two onshore gas storage facilities in the UK, for a total of £25m.
