(WO) — Kistos Holdings has taken legal ownership of producing Blocks 3 and 4 onshore Oman from Mitsui E&P Middle East following the issuance of a Royal Decree, marking the company’s entry into the MENA upstream sector.
The assets form part of Kistos’ broader $148 million acquisition of interests in Oman Blocks 3, 4 and 9 from Mitsui. Formal completion of the sale and purchase agreement for Blocks 3 and 4 will follow, covering final adjustments and accounting formalities.
Completion of the Block 9 acquisition is progressing separately under its Exploration and Production Sharing Agreement (EPSA) framework, Kistos said.
The overall three-block transaction, effective Jan. 1, 2025, will add 25.6 MMboe of 2P reserves to Kistos’ portfolio. The acquired interests contributed approximately 9,000–10,000 boed of predominantly liquids production in 2025 and are expected to double the company’s existing production and 2P reserves.
Kistos values the acquisition at approximately $5.80/boe and expects the assets to be immediately cash-generative.
“Royal Decree on Blocks 3 & 4 marks Kistos’ official entry into the 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,” said Andrew Austin, executive chairman of Kistos.
About The Author
