Kistos secures new blocks in Greater Laggan Area with TotalEnergies, expands UK North Sea presence

Kistos Holdings plc (LON: KIST) has announced a significant strategic expansion within the Greater Laggan Area (GLA), located west of the Shetlands, UK. Partnering with TotalEnergies SE, Kistos has been awarded seven new blocks following the 33rd Offshore Licensing Round. This acquisition further cements Kistos’ presence in one of the most productive and strategically important gas hubs in the UK Continental Shelf (UKCS).

The new blocks—206/2a, 214/27, 214/28a, 214/29a, 214/22a, 214/23a, and 214/24a—are situated within the GLA, an area where the JV partners already manage substantial operations. Kistos will hold a 33.3% working interest in these blocks, with TotalEnergies serving as the Operator. The region is home to key gas production fields, including Laggan, Tormore, Glenlivet, and Edradour, all of which are part of Kistos’ existing portfolio following its acquisition of a 20% stake from TotalEnergies in 2022​.

This strategic acquisition is a continuation of Kistos’ focused growth within the UK North Sea. The new blocks include the previously identified Ballechin exploration prospect, which has the potential to extend the life of existing infrastructure and increase economic output. The JV partners plan to conduct detailed seismic studies to evaluate the blocks’ full potential. This follows Kistos’ strategy of enhancing production capacity while maintaining a low-carbon footprint, as demonstrated by its Dutch operations with emissions as low as 0.01 kg CO2e per boe​.

Kistos’ aggressive expansion into the GLA is part of a broader strategy to diversify and strengthen its asset base. In addition to the newly awarded blocks, Kistos has been involved in several strategic acquisitions, including the purchase of gas production assets from Tulip Oil Netherlands B.V. in 2021 and a 20% interest in the GLA in 2022. The company’s recent acquisitions also include Mime Petroleum A.S., adding 24 million barrels of oil equivalent (MMboe) of 2P reserves, and UK gas storage assets that could deliver up to 11% of the UK’s flexible daily gas capacity​.

The Greater Laggan Area is a crucial component of Kistos’ UK operations. The GLA comprises four producing gas-condensate fields and additional exploration licenses. The onshore Shetland Gas Plant (SGP), integral to processing hydrocarbons from these fields, is connected by a 140 km dual pipeline network, linking the fields to the SGP where crude oil and gas are processed before export​.

This latest expansion reinforces Kistos’ commitment to maximizing the value of existing assets while pursuing new opportunities in the UK North Sea. As the company continues to grow, it remains focused on delivering sustainable energy solutions with a low environmental impact, positioning itself as a key player in the ongoing energy transition.