UK independent Kistos said that production from the Greater Laggan Area (GLA) in the UK saved production targets as its Balder Future project in Norway stalled.
In its 2024 full year results, the firm’s executive chairman, Andrew Austin, said: “Strong production across the portfolio, particularly from the GLA, has ensured we met production guidance for the year, despite delays to the Balder Future project.”
Kistos expects Shell’s Victory field to come online in the final quarter of this year as a tie-back to the GLA, and it is currently assessing other options in the UK.
Kistos is a joint venture partner in the GLA with TotalEnergies, however, a change in operator is on the horizon, as Prax bought over the French supermajor’s stake in the asset.
In Austin’s statement to shareholders, he wrote: “The change of operator in the GLA, which is expected to take place in the second quarter of 2025, will provide additional momentum in sanctioning development projects.”
Additional opportunities are on the table for Kistos in the UK as it forges ahead with Norwegian operations.
“We continue to explore organic development opportunities, including the Glendronach field and potential infill wells at Tormore and Glenlivet,” Austin added.
In 2023, Kistos and TotalEnergies opted to pursue Edradour West over the Glendronach field in the GLA due to “adverse changes” in the fiscal environment within the UK.
At the time, Kistos had hoped for both to be sanctioned. However, the French supermajor ultimately chose to develop the GLA as it labelled the UK fiscal regime “challenging”.
Despite the GLA being named as one of the assets that ensured Kistos met production targets, the business saw “lower production in the Netherlands and the UK.”
Kistos achieved a production rate of 8,050 boepd throughout 2024, a 750 barrel drop off from the year previous.
This, of course, was represented in the firm’s profits, which dropped from $144,407,000 in 2023 to $116,950,000 last year.
Big plans in Norway
Austin explained that the sailaway of the Jotun floating production storage and offloading vessel (FPSO) “represents an important milestone” for his firm’s aspirations in Norway.
He said: “Together with all 14 production wells completed and associated subsea equipment installed, the hook-up and final commissioning is expected to be undertaken over the coming months, with first oil targeted for the end of the second quarter of the year.”
Production at the site is set to see an 80,000 barrels of oil equivalent produced per day (boepd) uptick.
This jump in production is set to be achieved “approximately three to four months following first oil.”
Kistos previously outlined its reasoning for entering Norway was due to the UK being a “difficult” place to invest and in January hailed the “strong investment environment in Norway”.