UK’s Kistos buys stakes in Oman blocks for $148m

Kistos, a London-listed energy company, has signed an agreement to acquire stakes in onshore blocks in Oman as part of its expansion in the Middle East.

The company will buy 5 percent in block 9 and 20 percent in blocks 3 and 4 from Mitsui E&P Middle East for $148 million.

The acquisition, which is subject to regulatory clearance, will be funded from existing cash reserves, Kistos said in a statement.

The assets are expected to add 25.6 million barrels of oil equivalent reserves and deliver additional estimated net production of between 9,000 and 10,000 barrels of oil equivalent per day this year. 

Block 9, operated by Occidental Petroleum, covers two producing areas. Blocks 3 and 4, operated by CC Energy Development, include seven producing fields across 29,000 square kilometres in eastern Oman.

All three blocks operate under Oman’s Exploration and Production Sharing Agreement.

“Our entry into the Mena region is an important step forward to build a resilient, future-facing energy company,” said Andrew Austin, executive chairman.

Further reading:

• Oman’s OQGN signs $100m gas pipeline deal
• Oman state energy company’s revenue takes a hit
• Oman revenue hit by drop in oil and gas income