Kistos achieved an average daily production of 18,500 barrels of oil equivalent (boed) in the third quarter of 2023, down from 20,800 boed in the first half of the year. This decrease was due to a planned 26-day shutdown for the relocation of the Jotun FPSO system in Norway in July. Additionally, annual production up to September 30 averaged 20,000 boed, and Kistos has maintained its full-year guidance at 19,000 to 21,000 boed.
Production Start of Balder and King Wells
In Norway, the last two wells of the Balder Phase V field came online in July. The King well, drilled from the Ringhorn platform, began production in August ahead of schedule. On October 14, Kistos agreed to acquire a 10% interest in operations in PL 169E, PL 956, and PL 956B from Vår Energy for $12.9 million. This transaction adds 4.3 million barrels of oil equivalent (MMboe) to 2P reserves and 2C resources and still requires approval from the Norwegian Ministry of Energy.
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Strong Performance in UK and Netherlands Assets
Production performance in Kistos's assets in the UK and Netherlands has been significantly high this year. Production efficiency in the Greater Laggan Area, now managed by Serica Energy, has reached 95%, and on the Q10-A platform in the North Sea off the Netherlands, it has reached 93%. The annual shutdown at Q10-A was completed on time and under budget, along with an integrity inspection campaign for the jacket. In the Greater Laggan area, the Victory field, managed by Adora, is reducing unit operating costs through increased production at the Shetland gas plant.
In Oman, Kistos completed the acquisition of Blocks 3 and 4 on September 14, and these interests will be integrated into its results from October 1. Production in this area is progressing close to plan and is supported by new oil from the flats and AGW areas. The completion of the Block 9 transaction is expected in the fourth quarter. The operator of Block 9 has added a fifth drilling rig since the implementation of the revised terms in the production sharing agreement.
Andrew Austin, CEO of Kistos, stated: "Production this quarter was impacted by the planned shutdown of the Jotun FPSO system, but with the final Balder Phase V wells and the King well coming online, we remain on track to deliver production in the forecast range for 2026 of 19,000 to 21,000 boepd."
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