Kistos secures five-year extension for North Sea licence

UK-based oil and gas company Kistos has secured an extension for the term of the M10/M11 offshore exploration licence.

Kistos successfully appealed against the Netherlands Ministry of Economic Affairs’ decision to not extend the term of the licence.

Effective immediately, the licence is extended by five years, the company said.

M10/M11 is located in the northern part of the Netherlands North Sea Shelf and is said to hold 31.7 million barrels of oil equivalent in technically recoverable 2C resources.

The UK energy company holds a 60% operated working interest in M10/M11 and the remaining 40% is held by its partner EBN.

Stakeholder mapping for additional field drilling is complete, and Kistos will now apply for a permit for an appraisal well.

Kistos executive chairman Andrew Austin said: “This is very good news both for Kistos and for the Netherlands. It increases the potential for domestic gas demand to be met with domestic supplies, which has positive implications for CO₂ emissions.

“Whilst the delay to the M10/M11 project has been frustrating, we are pleased that the right outcome has been achieved and look forward to working with the local municipalities to obtain the relevant permits to appraise the field.

“We continue to work with our partners in all three jurisdictions to mature further resources to reserves prior to year-end.”

In May this year, Kistos acquired Mime Petroleum in a bid to gain access to oil fields offshore Norway.

Read the latest issue of the OGV Energy magazine HERE