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Kistos announces GLA plans but warns on taxes

18 January 2023

The Benriach well in the Greater Laggan Area, operated by French major TotalEnergies, will be drilled early this summer. A contract for the rig has been signed and it will start work in the second quarter, junior partner Kistos Holdings said in a stock-exchange statement January 18.

The well is targeting recoverable resource of 638bn ft³ gross, with Kistos holding a 25% stake. Production from the asset is averaging 6,000 boe/d net to Kistos, with uptime above 95% (excluding planned maintenance).

The decision on Glendronach Field Development, also in the GLA, will be taken later this year to allow further technical reviews to be undertaken with the aim of reducing costs, it said. Kistos bought into GLA from TotalEnergies last year.

Kistos also drew attention to the “aggressive” tax regimes that the UK and Dutch governments have put in place, saying they were “to the detriment of Europe’s future energy security. Kistos will do what it can to maximise recovery at these high commodity prices and utilise the Energy Profits Levy where possible. While we continue to actively look for value accretive acquisitions in the North Sea and Europe, the asymmetry created by these tax regimes makes this challenging.” Private equity-backed Kistos also has stakes in assets in Dutch waters.

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