London-listed Kistos is doubling down on the North Sea by spending $12.9 million to snap up a slice of oil and gas fields on the Norwegian Continental Shelf (NCS) and cement its partnership with Norway’s energy player Vår Energi.
Kistos has signed a sales and purchase agreement (SPA) with Vår Energi to buy a 10% working interest in the production licenses PL 169E, PL 956, and PL 956B on the Norwegian Continental Shelf for the upfront consideration of $12.9 million, with an effective date of January 1, 2026.
This move enables the London-listed firm to hold a uniform working interest across the Balder-Ringhorne fields, the Ringhorne East Unit, and the part of the Ringhorne Nord field located in PL 956 and PL 956B, in line with its existing 10% stake in PL 027.
The company explains that the addition of these new licences to the portfolio will add a small amount of production and 4.3 million barrels of oil equivalent (boe) net for 2P reserves and 2C resources combined, of which the 2C volumes are expected to be on stream in 2029.
In addition, the transaction will align the interests of both players across the Balder area, enabling more efficient field development and reducing operating costs, both supporting maximum resource recovery from the fields. The completion of the acquisition is subject to customary regulatory approval from the Norwegian Ministry of Energy.
The Balder area is a core producing hub in the central Norwegian North Sea operated by Vår Energi with the remaining 90%. 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 specific Ringhorne licenses is expected to streamline ownership.
Andrew Austin, Executive Chairman of Kistos, commented: "These new licenses increase our presence and exposure across the world-class Balder Area, while also extending our production profile at a low operating and development cost.
“As we strengthen our relationship with Vår, our partnership focus for the medium term will turn to bringing new production on stream by 2029 and maximising the 2C-to-2P development opportunities."
Vår Energi, which continues to be busy with mergers, acquisitions, divestments, and asset swaps, recently brought certain assets and licenses from Pandion Energy into its fold, fortifying its position in the Gjøa and Åsgard areas.