Kistos to Acquire 30% of Abbey and Baker Projects, Adding 9 Million Barrels of Oil Equivalent
Key Facts
Kistos announced on 2 November 2026 an agreement to acquire from Petrogas a 30% stake in the Abbey and Baker gas projects in the southern North Sea, giving it a non-operated interest in two developments that have yet to begin production. The company expects the projects to add about 9 million barrels of oil equivalent to its portfolio when it takes a final investment decision, which it is targeting in 2027. Energy Voice reported that first gas is targeted in 2029, putting the production addition beyond the expected completion date of the deal. The transaction remains subject to approval by the UK's North Sea Transition Authority and other customary conditions. The transfer of the stake to Kistos is therefore tied to the approval process, while development and production plans remain subject to subsequent decisions.
Development estimates put combined peak output at about 18,000 barrels of oil equivalent per day, while Kistos's estimated net stable production is about 4,000 barrels of oil equivalent per day. These figures reflect its share of the two projects within a broader production plan: the peak figure covers gross output from both fields, while the 4,000 barrels per day figure represents the company's net share once production stabilizes. Available information did not specify when peak output would be reached or how long production would remain stable. The company said the addition of about 9 million barrels of oil equivalent would enter its portfolio when it takes the final investment decision, expected in 2027. That would put the final decision ahead of the targeted first gas date in 2029, according to the announced schedule.
Kistos Chief Executive Andrew Austin said the deal "adds a high-quality, gas-focused development to our UK portfolio at an attractive entry point." He added that the UK would continue to rely on domestic gas supplies "for many years to come," and that the Abbey and Baker fields would provide long-term production and support the company's existing North Sea gas business. The remarks set out the company's rationale for the deal and its link to domestic gas supplies, without changing the announced timetable for the two projects. Kistos's executive chairman also said the company was pleased to be working again with Petrogas, a company it knows well, and that the technical work it had completed on the fields was "of a very high standard." This reflects Kistos's assessment of its partner, which will retain the operating role, and of the technical work completed on the two projects.
Petrogas will remain operator of the two projects, while Kistos will acquire a non-operated participating interest. Under the transportation plan, produced gas will be sent to the York platform and then transported onshore via Perenco's Dimlington terminal in Yorkshire. This offshore infrastructure links the fields to an onshore receiving terminal as part of the planned production route. On the regulatory track, the UK Department for Energy received the project's environmental statement on 30/07/2026. The public notice period began on 10/08/2026 and ended on 14/09/2026, before the agreement was announced on 2 November. Published information forecast completion before the end of 2026, subject to approval by the UK's North Sea Transition Authority and satisfaction of customary conditions.