UK Firm Acquires Stakes in Key Oman Upstream Block: What This Means for Investors and Business Growth
MUSCAT: UK-based independent oil and gas company Kistos Energy has announced its entry into the Middle East energy sector with the acquisition of stakes in several producing hydrocarbon concessions in Oman.
The publicly traded firm, listed on London’s Alternative Investment Market (AIM), has signed a binding agreement to acquire a 5% working interest in Block 9 and a 20% working interest in Blocks 3 and 4 from Mitsui E&P Middle East BV. Both concession areas are located onshore in Oman.
The transaction, with an effective date of January 1, 2025, is valued at $148 million, subject to standard closing adjustments. The payment will be made at completion using Kistos’s existing cash resources.
Block 9 is a significant contributor to Oman’s oil and gas output and forms a key part of Occidental Oman’s upstream portfolio, in which the company holds a 50% working interest. Over decades, Block 9 has produced over 823 million barrels of oil. The block includes major fields such as Safah and Wadi Latham in northern Oman, underscoring its importance within Oxy Oman’s operations.
Blocks 3 and 4, located in eastern and central Oman, are operated by CC Energy Development SAL (CCED). The partnership includes CCED as operator, Tethys Oil, and formerly Mitsui E&P Middle East BV. These blocks have also played an important role in Oman’s oil production, delivering over 150 million barrels since CCED began managing them.
Andrew Austin, Executive Chairman of Kistos, described the acquisition as a major milestone, highlighting the strategic expansion into a new, key region. He emphasized that the acquired assets are aligned with Kistos’s goal of securing high-quality, value-enhancing investments both in the short and long term.
Effective January 1, 2025, the acquisition will increase Kistos’s reserves to 50 million barrels of oil equivalent (mmboe) and is expected to raise production significantly to around 20,000 barrels of oil equivalent per day (boepd) by 2026.
Special Analysis by Omanet | Navigate Oman’s Market
Kistos Energy’s strategic entry into Oman’s hydrocarbon sector signals growing international confidence in Oman’s oil production potential and offers an opportunity for the Sultanate to attract further foreign investment. For businesses, this underscores the value of leveraging partnerships with global players to enhance local energy production capacity. Smart investors should now consider Oman’s oil concessions as high-value, stable assets with long-term growth prospects, especially as energy demand remains robust globally.
