OQEP accelerates upstream investments and LNG growth in Q1
With a robust portfolio of 14 upstream assets across the Sultanate of Oman — nine of which are producing — OQEP operates or partners in a range of concessions at various stages of development.
The company's recent activities underscore its dual strategy of optimising oil and gas production while opening new frontiers for exploration and sustainable energy.
UNLOCKING NEW INVESTMENT OPPORTUNITIESA key development in Q1 2025 was OQEP's collaboration with the Ministry of Energy and Minerals; and global investment bank Scotiabank to market Blocks 36, 43A and 66. These are part of a broader set of 11 blocks the Ministry plans to offer to investors through 2025–2026. OQEP's central role in this effort reinforces its position as a gateway for upstream investment into Oman's petroleum sector.
In March, OQEP signed an Exploration and Production Sharing Agreement (EPSA) for Block 54 with the Ministry and London-listed Genel Energy. Under a joint operating agreement, OQEP will lead operations with a 60% stake, while Genel holds the remaining 40% as a non-operator. This marks Genel's first venture into Oman, lured by the country's stable regulatory environment.
The Karawan Concession, spanning 5,632 km² in the South Oman Salt Basin, is underexplored but adjacent to productive fields. Both parties plan to invest up to $25 million in early-phase activities including seismic surveys and well testing over the next three years.
ADVANCING EXPLORATION
IN BLOCK 47Another significant milestone was the extension of Phase 1 exploration at Block 47, jointly operated with ENI Oman BV.
The Najid-1 exploration well, spudded in February 2025, is expected to determine the commerciality of promising gas prospects.
The six-month extension, agreed with the Ministry in April, will allow for deeper evaluation and, if successful, may lead to a second development phase.
BOOSTING OIL OUTPUT
FROM BLOCK 60OQEP also reported 86% progress in the Bisat C Expansion at Block 60 — its flagship oil asset, contributing 17% of the company's Q1 production. Once completed, the expansion will add 37,000 barrels per day (bpd) in oil processing capacity and 400,000 bpd in water treatment.
Commissioning is targeted for Q3 2025, solidifying Block 60's role as a core revenue generator.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
3 hours ago
- Observer
MoL intensifies inspections to regulate labour market
MUSCAT, AUG 16 The Ministry of Labour (MoL) is stepping up its efforts to regulate Oman's labour market with a series of inspection campaigns across the Sultanate of Oman's governorates. These inspections are part of an ongoing strategy to create a positive, transparent and productive work environment while ensuring compliance with the Labour Law and related regulations. The campaigns are designed not only to detect violations but also to raise awareness among employers and workers about the importance of adhering to the law. By doing so, the Ministry seeks to safeguard the rights of workers, strengthen fair competition and promote sustainable job opportunities for the national workforce. Amanullah bin Balan al Balushi, Head of the Inspection Campaigns Department at the Labour Control Office in Muscat, explained that inspections are carried out in multiple ways. They may be scheduled visits based on action plans, targeted operations following public complaints, or surprise checks to uncover irregularities such as the employment of illegal workers. He added that such campaigns are essential in maintaining order in the labour market and curbing practices that negatively impact the economy and society. To enhance effectiveness, the Ministry has recently assigned the Inspection Unit of the Security and Safety Services Corporation (SSC) to conduct field campaigns. These include identifying non-Omani workers who violate labour laws in governorates such as Muscat, Dhofar and Al Batinah North. The scope of this partnership is expected to expand to additional governorates, reflecting the Ministry's commitment to broader nationwide coverage. Inspection campaigns cover a wide range of sectors that are vital to Oman's economic growth. These include healthcare — such as hospitals, clinics and pharmacies — retail markets, logistics and transportation, tourism establishments, warehouses, private education institutions, industrial workshops and public services. By extending oversight across these diverse fields, the Ministry ensures that all establishments abide by regulations and that Omani workers are given fair employment opportunities. 'Inspection campaigns contribute significantly to regulating the labour market, reducing irregular labour and creating sustainable job opportunities for Omanis', Al Balushi emphasised. He pointed out that the campaigns not only protect the interests of workers and employers but also enhance investor confidence in the Omani market by promoting transparency and stability. The Ministry's latest data highlights the scale of these efforts. Since the beginning of this year, 6,698 inspection campaigns have been carried out in cooperation with competent authorities. In addition, 697 reports were received through the Ministry's electronic complaints system and the Tajawab platform. During this period, 7,874 non-Omani workers were found to be in violation of labour laws, underscoring the need for continued monitoring and enforcement. By maintaining strict oversight, the Ministry of Labour is aligning its efforts with Oman's National Vision, which seeks to create a fair and competitive labour market, attract foreign investment and ensure that national human resources are employed effectively in line with the country's development goals. Amanullah bin Balan al Balushi
Observer
5 hours ago
- Observer
MHT to launch tourism promotion in Jaipur, India
The Ministry of Heritage and Tourism (MHT) will launch promotional workshops in Jaipur, India, from August 18 to 21 to enhance the Sultanate of Oman's presence in regional and international tourism markets. This workshop aims to showcase the Sultanate of Oman as a distinct tourist destination in the Middle East, attracting visitors with its unique geographical diversity, historical and cultural depth, and safe and stable climate. The Indian market is a priority market within the Ministry's promotional plan, given the growing demand for outbound tourism, in addition to the growing cultural and economic ties between the two countries. The event will include direct meetings with Indian travel and tourism agents, airline representatives, and specialized media outlets, to build strategic partnerships and introduce them to the Omani tourism product and the opportunities available in various sectors, including wedding tourism, adventure tourism, heritage tourism, luxury hospitality, cruise tourism, and conference and incentive travel. The workshop will be accompanied by visual presentations and introductory publications, in addition to interactive sessions presented by the participating Omani delegation, which includes a number of representatives from Omani tourism sector institutions and establishments. The aim is to facilitate bilateral business meetings (B2B) with their Indian counterparts and to present customized tourism programs and options that suit various groups and interests. Recent years have witnessed steady growth in the number of tourists from India, supported by visa facilitation, increased air connectivity, and expanded cooperation between Omani companies and their Indian counterparts. Through these initiatives, the Sultanate of Oman seeks to consolidate its position as a leading and sustainable tourism destination and enhance engagement with target markets.
Times of Oman
8 hours ago
- Times of Oman
Net profits of MSX-listed firms rise by 14.1% to OMR757.2mn
Muscat: Net profits of public joint-stock companies listed on the Muscat Stock Exchange (MSX) rose by 14.1 percent to OMR757.2 million in the first half of this year compared to OMR663.3 million in the same period last year. Preliminary financial results indicated that many companies saw increased profits, benefiting from economic growth and rising domestic demand, coupled with companies' efforts to boost exports and diversify their products. The total number of companies that achieved profits in the first half of this year reached 76. OQ Exploration and Production (OQEP) topped the list of companies with the highest profits, with OMR166 million. Bank Muscat came next with a profit of OMR125.8 million, Bank Sohar International came reported profit of OMR46.2 million. This was followed by Omantel profits amounting to OMR35.1 million, National Bank of Oman (NBO) with profits of OMR34 million. OQ Gas Networks reported profits of OMR25.4 million. Ominvest OMR24.6 million, Bank Dhofar OMR23.6 million, OQ Basic Industries OMR22.7 million and Ahli Bank with profits of OMR22.3 million. The first half of this year saw total losses incurred by public joint-stock companies rise to approximately OMR8.6 million, compared to OMR8 million in the same period last year, marking a 7.3 percent increase. The total number of companies that recorded losses in the first half of this year reached 17 companies. Raysut Cement topped the list with losses of OMR2.9 million, Oman Fisheries Company OMR1.1 million, Fincorp with loss of OMR928,000. Majan Glass OMR631,000 and National Aluminum Products Company reported losses of OMR522,000. At the sector level, the financial sector witnessed a 25.7 percent growth in net profits, which rose from OMR274.3 million to OMR345.1 million. The sector benefited from the strong performance of banks, whose net profits rose to OMR275.9 million compared to OMR256.3 million in the same period last year. The insurance sector performed well, with its net profits increasing to approximately OMR20 million, benefiting from the transition of Liva Group and Takaful Oman Insurance Company from losses to profits. Finance companies also performed well, with the sector's net profits rising to OMR13.1 million in the first half of this year, compared to OMR10.7 million in the same period last year. In the services sector, the energy and water sector recorded strong performance, with net profits rising to OMR73.6 million compared to OMR50.3 million in the same period last year, recording a growth of 46.3 percent, benefiting from the positive performance of listed companies and the transformation of Sohar Power and Barka Water and Power from losses to profits. The financial results of oil marketing companies showed good performance, with the sector's profits rising to approximately OMR9.6 million compared to OMR6.4 million in the same period last year. In contrast, the financial results of the telecommunications sector indicated a decline in net profits to OMR38.7 million, compared to OMR 43.8 million in the same period last year. The sector was affected by the decline in Omantel's net profits at the local level to OMR35.1 million, compared to OMR38.8 million in the same period last year. Ooredoo also recorded a decline in its net profits from OMR5 million to OMR3.6 million. However, the net profits of the Omantel Group, which includes the Kuwaiti Zain Group, increased from OMR110.2 million to OMR161.1 million. Omantel owns a 21.9 percent stake in the Kuwaiti Zain Group. Industrial companies performed well, with net profits for 20 industrial companies rising to OMR64.4 million compared to OMR32.8 million in the same period last year. This increase was due to the rise in net profits of OQ Basic Industries Company from OMR4.1 million to OMR22.7 million, making the company the top-ranked industrial company. Oman Cables Industry Company came in second with OMR11.3 million, followed by Voltamp Energy in third place with OMR6.8 million, Oman Cement in fourth place with OMR4.7 million, and Oman Flour Mills in fifth place with OMR4.3 million. The industrial sector managed to reduce its losses to OMR6.2 million, compared to OMR7.5 million in the same period last year. The sector also witnessed Dhofar Food and Investment, Oman Refreshments, and Al Maha Ceramics turning from losses to profits. The total number of industrial companies that recorded losses in the first half of this year reached 8 companies, compared to 10 companies that recorded losses in the same period last year. The good performance of public joint-stock companies was reflected in the Muscat Stock Exchange, which has witnessed a rise in share prices, trading volumes and values, and market capitalisation for several weeks, with increased liquidity directed towards investment in the exchange.
