Kistos to buy Tulip Oil Netherlands

The acquisition comprises a controlling (60%) interest in the Q10-A offshore gas field together with interests in a suite of offshore exploration and production licences in the Dutch North Sea. Tulip Oil Netherlands Offshore B.V. owns an operating interest in the Q10-A offshore gas field and interests in other fields in the Dutch North Sea, including the Q10-B, Q11-B and M10/M11 discoveries, and other exploration and appraisal projects. The Q10-A field has 2P reserves of 19.5 million boe.

Q10-A is reliant on solar and wind power. Its carbon emissions from production operations were <10g CO₂e/boe in 2020 and 17g CO₂e/boe in 2019, below the North Sea average of 21 kg CO₂/boe. The acquisition is in line with the company's strategy to acquire assets with a role in the energy transition. Plans for the future developments of the assets being acquired by Kistos utilise wind and solar power.

The total upfront consideration for the acquisition, subject to completion adjustments, is €220 million.

Andrew Austin, Chairman of Kistos, commented: "We are very excited to be beginning the next phase of Kistos' journey with the acquisition of these profitable and cash generative assets, which have probably the lowest carbon footprint of any production assets in the North Sea. To be producing gas, a vital transition fuel, from normally unmanned platforms powered by solar and wind is exactly what we set out to do. In addition, we see potential for significantly increased production from discovered hydrocarbons within the licences being acquired by Kistos.

"The team at Tulip have done a fantastic job to date in getting this low carbon production operation up and running and we are looking forward to working with them and our partners at EBN in replicating this success and being a model for future low impact developments."

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