Kistos Holdings PLC said Tuesday it has entered into a binding deal with Mitsui & Co Ltd to buy the Japanese diversified company’s stakes in Blocks 3, 4 and 9 onshore Oman, marking its entry into the Middle East.
Mitsui, through Mitsui E&P Middle East BV, will divest 20 percent in Blocks 3 and 4 and five percent in Block 9 to London-based explorer and producer Kistos for $148 million, Kistos said in a stock filing.
It expects the acquisitions to contribute 9,000-10,000 barrels of oil equivalent per day (boepd) net, with liquids comprising about 91 percent, to its production this year. Based on operator estimates as of the start of 2025, the assets would add 25.6 million barrels of oil equivalent (MMboe) net to Kistos’ proven and probable (2P) reserves, Kistos said.
“The acquisition equates to a valuation of approximately $5.80/boe of 2P reserves”, it said.
Block 9, in northwestern Oman, is operated by Warren Buffett-backed Occidental Petroleum Corp with a 50 percent stake. Block 9 contains the producing Safah and Wadi Latham fields. The Gulf country’s state-owned OQ SAOC owns 45 percent.
Blocks 3 and 4, in eastern Oman, are operated by Lebanon’s CC Energy Development SAL with a 50 percent interest. Sweden’s Tethys Oil AB holds 30 percent. Kistos noted seven fields have been put onstream in Blocks 3 and 4, which span about 29,000 square kilometers (11,196.95 square miles).
“Kistos’ entry into the Middle East adds geographical and onshore production diversification to the company’s existing portfolio”, Kistos said. “Representing an evolution in the company’s M&A [merger and acquisition] strategy, the acquisition aligns with the board’s core ambition of pursuing assets that have strong near-term production with significant development and exploration upside”.