Energy, Oil & Gas

OQEP expands upstream portfolio, targets 300,000 boe/d by 2030

MUSCAT
OQEP expands upstream portfolio, targets 300,000 boe/d by 2030

OQ Exploration and Production (OQEP) is expanding its upstream portfolio in Oman and pursuing selective international investments as it works towards a production target of approximately 300,000 barrels of oil equivalent per day (boe/d) by 2030.

The company reported production of 228,200 boe/d in the first half of 2026, up 2.7 per cent from the same period last year, reflecting continued growth across its assets, reported Oman News Agency.

Its strategy combines domestic exploration and development, targeted acquisitions and international partnerships, with a focus on financial discipline and sustainable shareholder returns.

In Oman, OQEP signed an agreement to acquire a 35 per cent non-operated participating interest in Block 27 from Mitsui E&P Middle East for RO 28.8 million ($75 million).

Operated by Occidental, the producing block is expected to contribute approximately 3,500 boe/d to OQEP’s net production in 2026.

The company also signed a concession agreement with PETRONAS for offshore Block 18, covering more than 21,000 square kilometres and offering significant exploration potential.

The agreement builds on a memorandum of understanding signed by the two companies in October 2025.

In Musandam Governorate, OQEP partnered with Turkish Petroleum Overseas Company (TPOC) to develop offshore Block 80.

Both companies hold a 50 per cent participating interest, with OQEP serving as operator.

The agreement is intended to support further exploration and development of the area’s oil and gas resources.

OQEP is also advancing its existing portfolio. It signed an amendment to the Exploration and Production Sharing Agreement for Block 9, where it holds a 45 per cent interest, while exploration successes in Blocks 60 and 48 provide additional potential for future production growth.

Block 60 remains a core operating asset, with continued development of the Bisat field supporting the company’s production capacity. OQEP’s wider portfolio includes partnerships with international energy companies such as bp, Shell, TotalEnergies, Occidental, PETRONAS and Eni.

Internationally, the company is pursuing opportunities through carefully assessed partnerships and investments.

Through OQ Exploration and Production New Ventures, it signed a strategic cooperation agreement with Kazakhstan’s national oil and gas company, KazMunayGas (KMG), to identify and evaluate potential upstream investments in Kazakhstan and Oman.

OQEP also signed a memorandum of understanding with the Libyan Investment Authority to explore joint upstream investment opportunities in Oman, Libya and other international markets.

Both agreements support its ambition to diversify its asset base and broaden access to new exploration and production opportunities.

Mahmood Al Hashmi, Chief Executive Officer of OQEP, said: “Our growth strategy starts from a strong foundation in Oman. We are focused on maximising value from our assets and natural resources while building strategic partnerships that open new growth opportunities at home and abroad. The agreements and partnerships we have established demonstrate our ability to expand our investments and pursue carefully considered international growth, in line with investment criteria aimed at delivering sustainable shareholder value.”

He added: “We aim to build a more diversified and efficient portfolio by drawing on OQEP’s expertise and partnerships with major energy companies. This will support our ambition to reach approximately 300,000 barrels of oil equivalent per day by 2030 and reinforce our position as a trusted Omani partner in the upstream sector, both domestically and internationally.”

Looking ahead, OQEP plans to maximise value from its domestic portfolio through exploration, development, concession extensions and acquisitions of additional interests.

Its international expansion will focus on opportunities across the Middle East, North and East Africa, and Southeast Asia, prioritising assets with assessed risks and the potential to generate cash flow.

The company said its approach would draw on Oman’s established international relationships and OQEP’s experience in the upstream sector to support measured growth and long-term shareholder value.