OQ Exploration & Production Plans New Investments to Expand Oman Upstream Portfolio

By the Editorial Team · Wednesday, September 2, 2026

OQ Exploration & Production plans to finalize multiple investment deals by Q3 2026, including appraising Block 48, acquiring a 35% stake in Block 27, and operating Block 80 in Musandam, while expanding international partnerships in Libya and Indonesia. These initiatives coincide with a 3% production increase and a 19% rise in net profit in H1 2026, driven by higher output, improved commodity prices, and low operating costs.

OQ Exploration & Production (OQEP), the upstream division of Oman’s OQ Group, is preparing to finalize several new investment agreements in the third quarter of 2026 as part of its ongoing effort to expand its domestic and international portfolio. The company is focusing on leveraging its upstream expertise within Oman while pursuing strategic growth opportunities.

Dr Anwar al Kharusi, Chief Executive Commercial, highlighted the company’s appraisal plan for Block 48 during a recent earnings call outlining the first half of 2026 results. This appraisal is anticipated to support the transition of Block 48 toward development, potentially adding a new growth asset to OQEP’s portfolio. Additionally, OQEP is progressing the acquisition of a 35 percent stake in Block 27, a move expected to contribute immediate production increases and additional reserves, creating operational synergies with adjoining fields.

OQEP has also secured a concession agreement with Turkish Petroleum to operate Block 80 in the Musandam region. The company will hold a 50 percent interest in the block, which includes the producing West Bukha oil and Bukha gas fields—previously part of Block 8—and offers significant exploration potential across the concession area.

Beyond Oman’s borders, OQEP is actively pursuing international growth through strategic cooperation agreements. These include a partnership with the Libyan Investment Authority focused on upstream exploration and production opportunities in both Libya and Oman, and a collaboration with Indonesia’s Pertamina aimed at exploring joint oil and gas investments across Oman, Indonesia, and other global markets.

The company’s expansion plans come amid a period of improved operational and financial performance. Mahmoud al Hashmi, Chief Executive Officer, reported that OQEP’s production averaged 228,000 barrels of oil equivalent per day (boe/d) in the first half of 2026, marking a nearly 3 percent increase compared to the previous year. The company’s revenue rose 12 percent to RO 685 million ($1.78 billion), supported by higher output and favorable commodity prices, while operating costs remained under $9 per barrel of oil equivalent.

Adjusted cash flow from operations increased 14 percent to RO 331 million, and net profit climbed 19 percent to nearly RO 200 million. According to Chief Financial Officer Khalid al Qassabi, oil and condensate sales volumes rose approximately 3 percent to 11.6 million barrels, with the average realized price reaching nearly $81 per barrel, up 8 percent year-on-year. Gas sales volumes posted stronger growth, increasing over 17 percent to 69.7 billion standard cubic feet, driven by expanded production and improved condensate optimization. The average realized gas sales price also improved by 2 percent to $3.51 per million standard cubic feet.

OQEP’s management characterized the combination of increased volumes, stronger commodity prices, stable operations, and a low-cost asset base as key factors underpinning the company’s earnings growth during the first half of 2026.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.