OQEP posts RO 71.9mn Q1 profit despite weaker oil prices

MUSCAT: OQ Exploration & Production (OQEP), the upstream energy arm of OQ Group, reported a net profit of RO 71.9 million for the first quarter of 2026, demonstrating resilience in the face of lower global oil and gas prices and continued volatility in regional energy markets.
The publicly traded company said its earnings for the three-month period ended March 31, 2026, compared with net profits of RO 74.867 million recorded during the corresponding period of 2025.
Despite a sharp decline in crude oil prices during the quarter, OQEP said disciplined cost management, stronger operational performance and increased hydrocarbon sales volumes helped sustain profitability.
“The company addressed the impact of the decline in oil prices — approximately 16 per cent compared to the same period in 2025 — by increasing sales volumes and improving its cost structure,” said Ashraf Hamed Al Mamari, Chairman of OQEP’s Board of Directors.
According to Al Mamari, oil sales volumes rose by 21 per cent during the quarter, while gas sales volumes increased by 17 per cent compared with the first quarter of last year. “As a result, the company maintained its targeted level of profitability, recording a net profit of OMR 71.9 million during the period,” he added.
Global energy markets witnessed a downturn during the early months of 2026, with the average price of Omani crude falling to around $62.90 per barrel in the first quarter, compared with approximately $75.30 per barrel during the same period in 2025. However, oil futures rebounded in March amid disruptions to regional energy supply chains, contributing to short-term price volatility.
Alongside its financial performance, OQEP said it continued to make progress on its growth and exploration strategy during the quarter.
The company highlighted ongoing development work in Block 60, where the Haushi reservoirs continued to show encouraging progress following successful evaluation tests conducted earlier.
In Block 48, OQEP carried out an extended well test ahead of a planned appraisal programme scheduled for the second quarter of 2026.
The company also pointed to advances in its strategic expansion plans, particularly following a memorandum of understanding signed with Malaysia’s Petronas late last year. The agreement paved the way for a new concession arrangement involving OQEP, Petronas and Oman’s Ministry of Energy and Minerals for offshore Block 18.
OQEP described the concession agreement for Block 18 as a significant offshore exploration opportunity expected to attract additional investment into Oman’s oil and gas sector and support broader economic activity in the Sultanate.
Meanwhile, construction of the Marsa LNG marine bunkering project continued to advance steadily during the quarter, with the development reaching more than 48 per cent completion, the company added.