Kistos to acquire Tulip Oil Netherlands

Kistos Plc has agreed to acquire the entire issued and outstanding share capital of Tulip Oil Netherlands BV from Tulip Oil Holding BV.

Tulip Oil Netherlands is operator (60%) in Q10-A offshore gas field with interests in other Dutch North Sea fields including Q10-B, Q11-B, and M10/M11 discoveries, as well as other exploration and appraisal projects.

Q10-A field has 2P reserves of 19.5 MMboe and generated total net production of 5,470 boe/d in 2020. Q10-A is reliant on solar and wind power. Its carbon emissions are below the North Sea average of 21 kg CO₂/boe.

Total upfront consideration for the acquisition is roughly US$263 million through a combination of cash, assumption by Kistos of an existing bond instrument issued by TONO, issue of a new debt instrument, and issue to Tulip of equity in Kistos.

Contingent consideration of up to US$195 million is payable on certain development milestones.

Upon completion of the deal, subject to conditions, Tulip Oil will become a shareholder and debtholder of Kistos and will continue to be a 90% shareholder in Rhein Petroleum.

Kistos is a closed-ended investment company established to acquire and manage energy sector companies or businesses.

Upon completion of the acquisition, Kistos expects to cease being an investing company under and instead become a trading company.

Source: oil & Gas Journal