OQEP lines up new investments across Oman’s upstream sector

MUSCAT, SEPT 1
OQ Exploration & Production (OQEP), the upstream arm of Oman’s OQ Group, is finalising several new domestic investments that are expected to be signed during the third quarter of 2026, as the energy company pushes ahead with a strategy to expand its operated and non-operated portfolio.
Dr Anwar Al Kharusi, Chief Executive Commercial, said the planned investments reflected OQEP’s continuing focus on deploying its domestic upstream expertise across Oman.
“We are now finalising our appraisal scheme in Block 48, which is one important growth lever for OQEP in Oman,” Dr Al Kharusi told investors during an earnings call covering the company’s first-half 2026 financial and operational performance.
The appraisal is expected to pave the way for Block 48 to transition towards development, adding another potential growth asset to OQEP’s portfolio.
OQEP is also progressing the acquisition of a 35 per cent interest in Block 27, which, upon completion, will bring immediate additional production and reserves while creating operational synergies with neighbouring assets.
Another significant addition is Block 80 in Musandam, where OQEP has signed a concession agreement with Turkish Petroleum. OQEP will operate the block with a 50 per cent interest. Block 80 incorporates the producing West Bukha oil and Bukha gas fields, formerly associated with Block 8, while also offering significant exploration potential across the wider concession.
Beyond Oman, OQEP has signed strategic cooperation agreements supporting its international expansion ambitions. These include an agreement with the Libyan Investment Authority covering potential upstream exploration and production investments in Libya and Oman, and another with Indonesia’s Pertamina to explore joint oil and gas investments in Oman, Indonesia and other international markets, he said.
The expansion drive comes against a backdrop of stronger operational and financial performance.
Mahmoud Al Hashmi, Chief Executive Officer, said OQEP’s production averaged 228,000 barrels of oil equivalent per day (boe/d) during the first half, almost 3 per cent higher year-on-year, supported by both operated and non-operated assets.
Revenue climbed 12 per cent to OMR 685 million ($1.78 billion), benefiting from higher production and stronger commodity prices, while operating costs remained below $9 per barrel of oil equivalent. Adjusted cash flow from operations increased 14 per cent to OMR 331 million, while net profit rose 19 per cent to nearly OMR 200 million.
Chief Financial Officer Khalid Al Qassabi said oil and condensate sales volumes increased nearly 3 per cent to 11.6 million barrels, while the average realised price rose 8 per cent to almost $81 per barrel.
Gas sales recorded even stronger volume growth, increasing more than 17 per cent to 69.7 billion standard cubic feet, supported by higher production from operated and non-operated assets as well as improved condensate optimisation. OQEP’s average realised gas sales price also increased 2 per cent year-on-year to $3.51 per million standard cubic feet.
Management said the combination of higher volumes, stronger realised commodity prices, reliable operations and a low-cost asset base provided a solid foundation for earnings growth during the first half.