MUSCAT: Key assets of OQ Exploration & Production (OQEP) — the majority state-owned upstream arm of integrated energy group OQ — are the focus of heightened exploration and development activities aimed at bolstering their oil and gas contribution to Oman’s national economy.
The publicly traded energy company, which has interests in a portfolio of 15 licences (operated, non-operated and partnership interests), reported an average production of 221.2K barrels of oil equivalent per day (boepd) in Q1 2025, representing a 14 per cent share of the country’s aggregate oil and gas output.
In updates shared this week with participants of the Muscat Stock Exchange (MSX), top officials provided an overview of ongoing efforts to lift output from existing producing assets, alongside initiatives to unlock the hydrocarbon potential of new acreage. Participating in the presentation were Dr Anwar al Kharousi, Chief Executive Commercial and Jaber al Namaani, Chief Financial Officer — OQEP.
First on the agenda was Block 60, the flagship producing asset of OQEP, currently the subject of a major investment in the form of the Bisat C expansion project. “We are happy to announce that the Block 60 expansion has been delivered ahead of time and on budget”, said Dr Al Kharousi. “With that, we have added an extra oil processing capacity of about 37,000 bpd, which will be used to connect our wells into the system, leading to an increase in production by about 10 per cent”.
A key upside, he added, is the ability for the operator to connect more high water-cut wells — wells that produce oil with a large volume of water — to the processing station. The facility also has a water processing capacity of 400,000 bpd.
Significantly, additional growth projects are also under consideration for Block 60. “These projects are yet to be introduced into the system — they need to be discussed with the government and approved. Once that happens, there will be further production projects utilising the upgraded capacity we have put in place”, the official noted.
Another key asset is Block 61, currently contributing around one-third of Oman’s total gas production. OQEP holds a 30 per cent interest in the licence, with BP Oman as operator.
“We have updated the Field Development Plan (FDP) with the operator BP and are now preparing to take the discussion forward for additional gas production, which will support the planned additional LNG capacity. That project (the 4th LNG Train) is currently under finalisation with the government and is expected to be ready by early 2026”, said the Chief Executive Commercial.
In the far north of Oman, OQEP is operating Block 8 offshore Musandam under a service-level agreement with the Omani government. A new well drilled in the licence is currently being analysed and tested, with the potential to contribute new gas volumes to the company’s Musandam portfolio, he said.
Exploration activities have commenced in Block 54, which was recently added to OQEP’s portfolio in partnership with Genel Energy of the UK. An early well test is planned before the end of this year or early 2026, according to the official.
In Block 47, operated by ENI of Italy with OQEP as partner, prospects of a new gas discovery following the drilling of the Najid-1 well this year could potentially lead to an extension of the EPSA pact covering the licence.
“The well has just reached the planned target depth; now we need to analyse and study the results; and this analysis will take a few months”, explained Dr Al Kharousi. “The block’s contract expires in September, so we need at least a six-month extension beyond September to allow the operator and OQEP to conclude the study of the well results. That will determine whether we proceed with re-testing or well testing, or whether we leave the block altogether. At the moment, the study is ongoing and we hope, Inshallah, to have good results. The extension is needed for that”, he added.
OQEP expects oil and gas production for the full year 2025 to be within the range of 220–230 kboepd (net working interest). Capital expenditure during the year is projected at $700 million to around $1 billion.
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