Middle East Business

Kistos takes legal title to a fifth of Oman's Blocks 3 and 4 after Royal Decree 78 of 2026 ratifies the Mitsui transfer

By Staff Writer  |  9 September 2026

The decree, issued on 3 September and published in the Official Gazette on 6 September, approves the assignment of Mitsui's 20 per cent interest in the two producing blocks in eastern Oman to Kistos Energy Middle East. It is the London-listed company's first asset outside the North Sea, bought as part of a 148 million dollar package that also includes 5 per cent of Block 9.

Kistos Holdings, the London-listed independent energy company, announced on 7 September 2026 that it had received confirmation of the grant of a Royal Decree approving its acquisition of a 20 per cent working interest in Oman's Blocks 3 and 4 from Mitsui E&P Middle East BV. The effect of the decree is that legal ownership of the interest has passed to the company's subsidiary, Kistos Energy Middle East.

Royal Decree 78/2026 was issued on 3 September and published in the Official Gazette on 6 September. It formally approves Mitsui's assignment of its 20 per cent of the rights and obligations under the petroleum agreement governing the blocks. Following the transfer, the participating interests are CC Energy as operator with 50 per cent, Tethys Oil with 30 per cent and Kistos Energy Middle East with 20 per cent.

Blocks 3 and 4 lie in eastern Oman, cover around 29,000 square kilometres and hold seven producing fields. Kistos and its partners plan a further 13 exploration wells by the end of 2029, targeting around 8 million barrels of prospective resources net to Kistos with a further 40 million barrels of net follow-up potential.

The transaction

Kistos agreed in December 2025 to buy Mitsui's 20 per cent of Blocks 3 and 4 together with a 5 per cent interest in Block 9 for an aggregate 148 million dollars, funded from existing cash. Of that sum, 100 million dollars was allocated to Blocks 3 and 4 and 48 million dollars to Block 9, subject to customary closing adjustments, with an economic effective date of 1 January 2025. The company says the combined acquisition adds 25.6 million barrels of oil equivalent of 2P reserves, lifts production by around 9,000 to 10,000 barrels of oil equivalent a day, mostly liquids, and represents an acquisition value of approximately 5.80 dollars per barrel of oil equivalent.

Formal completion of the sale and purchase agreement with Mitsui is to follow shortly, finalising completion adjustments and certain accounting formalities for the interim period since the original agreement was signed. The acquisition of the 5 per cent interest in Block 9, a producing 4,000 square kilometre concession in north-western Oman operated by Occidental, continues to progress on a different timeline because of its exploration and production sharing agreement framework.

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.

Andrew Austin, Executive Chairman of Kistos Holdings

Why ratification matters

In Oman an assignment of an interest under a petroleum agreement takes legal effect only once it is approved by Royal Decree and published in the Official Gazette. Until then the buyer has a contract with the seller but no title against the state, which is why the company treats the decree, rather than the signing last December, as the point at which ownership passed.

Together, Blocks 3 and 4 and Block 9 account for around 6 per cent of Oman's gross daily hydrocarbon production, according to Kistos. The company's existing portfolio spans the United Kingdom, Norway and the Netherlands, and it says it views Oman as a platform for further regional expansion. Two exploration wells drilled in the first half of 2025 were successful, according to the company.

What has not been stated

The announcements do not give the date on which formal completion with Mitsui will take place, the closing adjustments to the 100 million dollar allocation, the timetable for the Block 9 approval, or the drilling contractors and service companies engaged on the 13-well programme. Those points are left open here.