OQEP expands assets, targets overseas growth

MUSCAT: OQ Exploration and Production (OQEP) is expanding its domestic asset base and pursuing international partnerships as it targets production capacity of 300,000 barrels of oil equivalent per day by 2030.
The company’s production averaged 228,200 barrels of oil equivalent per day in the first half of 2026, up 2.7 per cent from a year earlier.
Its growth strategy combines development of existing Omani assets with acquisitions and selective overseas expansion, supported by agreements with national and international energy companies.
In Oman, OQEP signed an agreement to acquire a 35 per cent stake in Concession Area 27 from Mitsui E&P Middle East for RO 28.8 million.
The producing asset, operated by Occidental, is expected to contribute about 3,500 barrels of oil equivalent per day to OQEP’s production in 2026.
The company also signed a concession agreement for Offshore Block 18 with Petronas. The block covers more than 21,000 square kilometres, and the agreement follows a memorandum of understanding signed in October 2025.
In Musandam Governorate, OQEP and Turkish Petroleum Corporation signed a concession agreement for Offshore Block 80, with each holding a 50 per cent stake. OQEP will operate the block.
The company said the agreement would support further exploration of the governorate’s oil and gas resources.
OQEP has also signed an amendment to the exploration and production sharing agreement for Block 9, in which it holds a 45 per cent interest.
Exploration successes in Blocks 60 and 48 offer further production growth opportunities, alongside exploration work elsewhere in its portfolio.
Internationally, subsidiary OQ E&P New Ventures signed a strategic cooperation agreement with Kazakhstan’s national oil and gas company, KazMunayGas.
The agreement provides a framework to assess exploration, production and joint investment opportunities in Oman, Kazakhstan and other markets.
OQEP separately signed a memorandum of understanding with the Libyan Investment Authority to explore joint upstream opportunities in Oman, Libya and international markets.
The company said the partnerships supported its ambition to build a more geographically diversified portfolio, with investment decisions subject to financial, operational and governance criteria.
Mahmoud bin Abdullah al Hashmi, OQEP’s Chief Executive Officer, said that the company’s growth strategy rested on its domestic operations, with a focus on increasing value from existing assets while developing partnerships that could unlock opportunities at home and abroad.
He said the agreements would help expand OQEP’s international investment presence, subject to rigorous investment criteria aimed at generating sustainable shareholder value.
The company aims to build a more diversified and efficient portfolio by combining its operational expertise with the capabilities of its energy partners, he added.
OQEP’s partners include BP, Shell, TotalEnergies, Occidental, Petronas and Eni.
Block 60 remains a central part of its operating portfolio, with the company continuing to develop the Bisat field and increase its production capacity.
Its international strategy includes building on relationships with national and international oil companies, assessing risks before entering assets and prioritising interests capable of generating cash flow.
The company also aims to draw on Oman’s government-level relationships to access markets and apply expertise developed in its domestic operations to overseas projects.
OQEP said it would continue to develop its Omani portfolio through exploration, field development, concession extensions and acquisitions while building partnerships offering access to opportunities across the Middle East, North and East Africa, and Southeast Asia. — ONA