Kistos, a London-based oil and gas company, has purchased 10% of the production licenses in the oil and gas fields on the continental shelves of Norway for an investment of $12.9 million. This deal aims to strengthen the company's collaboration with Vår Energi, one of the key players in Norway's energy sector.
Details of the Deal and Its Effective Date
Kistos has signed a Sale and Purchase Agreement (SPA) with Vår Energi, under which the company acquires 10% of the working interests in the production licenses PL 169E, PL 956, and PL 956B for $12.9 million. The effective date of this transaction is set for January 1, 2026. This move allows Kistos to have an equal stake in the Balder-Ringhorne fields, the Ringhorne East unit, and part of the Ringhorne Nord field located in PL 956 and PL 956B.
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Commercial and Development Implications
The addition of the new licenses to Kistos's portfolio will result in a small increase in production and 4.3 million barrels of oil equivalent (boe) added to 2P reserves and 2C resources. The 2C volumes are expected to be developed by 2029. This deal aligns the interests of Kistos and Vår Energi in the Balder area, which will aid in the optimal development of the fields and reduce operational costs. This action ensures maximum returns from the existing resources in these fields.
The Balder area is a key production hub in the Norwegian Sea, managed by Vår Energi, which holds a 90% remaining share. Since Kistos is a partner in nearby assets, including PL 027 and participation in ongoing phased developments like Balder Phase V/VI and the FPSO Jotun infrastructure, the alignment of these Ringhorne licenses is expected to simplify ownership.
Andrew Austin, CEO of Kistos, stated: "These new licenses enhance our presence and access in the high-quality Balder area and also expand our production profile with lower development and operational costs.
Vår Energi, which continues to engage in mergers, acquisitions, divestitures, and asset exchanges, recently acquired some assets and licenses from Pandion Energy, strengthening its position in the Gjøa and Åsgard areas.
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