MUSCAT, FEB 27
Having amassed a portfolio of 14 upstream assets — a mix of operating and non-operating fields in Oman — majority Omani state-owned OQ Exploration & Production SAOG is well positioned to strengthen its presence in the country’s oil and gas sector through its role in marketing open hydrocarbon acreage.
According to the company, it has been engaged by the Ministry of Energy and Minerals to assist in marketing as many as 15 open blocks under an initiative first announced last year. Supporting this effort is Scotiabank, which serves as financial adviser under the programme.
Commenting on the arrangement, Ashraf bin Hamed al Maamari, Chairman of the Board of Directors of OQEP, noted: “In February 2025, the Ministry of Energy and Minerals announced new oil and gas investment opportunities in Oman. As part of our cooperation with the Ministry and its adviser, Scotiabank, OQEP supported the marketing of 15 blocks to attract additional investment into Oman’s exploration and production sector”, he stated in the Chairman’s Report for the year ended December 31, 2025.
Notable among the open licences actively marketed under this arrangement were Blocks 18, 36, 43A and 66. Of these fields, Block 18 was recently awarded to a joint venture comprising OQEP (whose wholly owned subsidiary Batinah Offshore LLC holds a 30 per cent non-operating interest) and Malaysian state energy firm Petronas’ subsidiary, PC Oman Ventures Ltd, which holds a 70 per cent operating stake.
Offers for the remaining blocks — 36, 43A and 66 — all border concessions marketed under the initiative known as Project Sun, are under evaluation by the Ministry and are expected to be awarded during the year, according to disclosures by OQEP officials.
Block 36, the largest of the border licences, covers 18,557 km² in the Rub Al Khali desert and has seen limited exploration, including rudimentary 2D seismic work and a single well (Hayah-1) that encountered minor gas indications. Further north, Block 66 spans 4,898 km² on the eastern flank of the Rub Al Khali basin and is considered a frontier exploration opportunity with geological characteristics similar to producing fields in neighbouring Saudi Arabia. Block 43A, covering 6,920 km² in Al Buraimi Governorate, offers potential conventional oil prospects, with proximity to existing producing fields regarded as an advantage.
Meanwhile, OQEP continues progress across its upstream portfolio. Block 60 — the company’s flagship producing asset — saw completion of two projects aimed at enhancing hydrocarbon output and operational reliability.
The Bisat C Expansion Facility increased oil processing capacity to 95,000 bpd and water processing capacity to more than 800,000 bpd, helping total production exceed 70,000 barrels of oil equivalent per day by the end of 2025.
OQEP also intends to monetise its equity entitlement of natural gas from Block 65, where it holds a 49 per cent working interest though operations are conducted by Occidental Oman. This initiative follows a Gas Sales Agreement signed between the partners and Integrated Gas Company (IGC), the sole shipper of natural gas in Oman.
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