OQEP acquires 35% stake in Oman’s Block 27

MUSCAT, APRIL 15
OQ Exploration and Production (OQEP) has signed an Asset Sale and Purchase Agreement (ASPA) to acquire a 35 per cent non-operated participating interest in Block 27, further strengthening its upstream oil and gas portfolio in the Sultanate of Oman, according to a filing with the Muscat Stock Exchange (MSX).
The agreement, signed on April 14, 2026, is with Mitsui E&P Middle East B.V. (MEPME), a wholly owned subsidiary of Japan’s Mitsui & Co, marking a strategic consolidation of domestic energy assets under OQEP. The transaction carries a headline consideration of $28.8 million, with an economic effective date of January 1, 2025, subject to customary approvals including those from the Ministry of Energy and Minerals and the issuance of a Royal Decree.
Block 27 is a producing asset operated by Occidental Petroleum, which holds a 65 per cent participating interest. The concession agreement for the block remains valid until 2035, offering long-term production visibility. OQEP expects net additional production of around 3.5 thousand barrels of oil equivalent per day (kboepd) in 2026 from its newly acquired stake.
In a statement, OQEP said the acquisition reflects its continued focus on value-accretive opportunities within Oman, reinforcing its position as a key contributor to the country’s upstream sector.
“This accretive transaction reflects OQEP’s continued commitment to strengthening its domestic portfolio and enhancing value through strategic acquisitions”, the company noted.
Chief Executive Officer Mahmoud al Hashmi underscored the company’s broader mandate, stating that OQEP “remains committed to delivering sustainable value for the Sultanate of Oman and its shareholders through efficient resource development and responsible energy production”.
The deal aligns with a wider trend of portfolio rebalancing among international energy firms operating in Oman. Earlier this year, Mitsui & Co announced its decision to divest its onshore oil and gas interests in the Sultanate of Oman, including holdings in Block 3&4 and Block 9, as part of a broader portfolio reconfiguration strategy. The Japanese conglomerate has been reshaping its upstream exposure while maintaining energy as a core business domain.
Mitsui, which entered Oman’s upstream sector in 2002 through MEPME, had progressively expanded its footprint across multiple concession areas, including Block 27. Its exit from select assets reflects a strategic shift aimed at reinforcing earnings and reallocating capital, while continuing to support stable energy supply and sustainable development objectives globally.
For OQEP, the acquisition represents a calculated move to deepen its domestic asset base amidst a stable regulatory environment and sustained demand for hydrocarbons. The addition of a producing asset with established operatorship and long-term concession validity is expected to enhance cash flow resilience and operational scale.
The transaction also underscores Oman’s continued attractiveness as an investment destination in the upstream sector, supported by clear regulatory frameworks and ongoing efforts to optimise resource development.
With completion subject to regulatory approvals, the Block 27 deal is poised to further consolidate OQEP’s role in driving growth and value creation within the Sultanate of Oman’s oil and gas industry.