OQ Exploration & Production SAOG (OQEP), the largest majority state-owned upstream energy corporation in Oman, looks forward to capital expenditures without subsidy of between $800 million and $900 million on its vast base of operating and non-operating assets in the Sultanate of Oman in 2026.
The publicly listed company is an OQ Group affiliate that manages a portfolio of 14 upstream assets that will help it attain a hydrocarbon production of an average of 224,000 barrels of oil equivalent per day (boe/d) in 2025, which in turn is part of its net working interest.
The company executives estimated that production will be between 220,000 and 230,000 boe/d in 2026. Also, with oil representing 54 percent of the output and gas representing the other 46 percent, this is considered a balanced portfolio that is flexible in times when oil prices are weak.
Speaking to the investors last week, Jaber al Noumani, Chief Financial Officer, claimed that the business intends to continue to operate at less than $10 per barrel of oil equivalent.
Capital expenditure is expected to average between $0.8 billion and $0.9 billion at the net working interest level. By the capital structure, the present net debt-to-EBITDA ratio of the company is approximately 0.24x, which offers OQIP a lot of room to grow.
He noted that with the company aiming to grow at a rate of about five years and by the year 2030, the company expects to produce about 300,000 boe/d, a sound capital structure will be foreseen, with a target of about 1.0x net debt to EBITDA in the current oil prices and below 1.5x in a stress oil price scenario.
Dr. Anwar al Kharusi, Chief Commercial Officer, stated that OQEP’s five-year strategy (2026–2030) is built on key pillars: growing cash flow, increasing production and reserves, sustaining that growth through 2030 and beyond, and gradually diversifying internationally.
He explained that there are two core growth pillars. First, to harness maximum domestic potential in Oman by leveraging the resources, bolstering the portfolio of the company, and enhancing integrated oil, gas, and LNG projects, like the currently under development Marsa LNG bunkering project in SOHAR Port and Freezone.
Second, to become more resilient and internationalize operations by using governmental support and the collaboration with IOCs to expand into pertinent geographies in the Middle East and North Africa, the expertise that was accumulated in Oman can be transferred to foreign markets.
Remarking on the growth strategy of the company, Hamoud al Hashmi, the CEO, mentioned that it will be organic and will be supported by the exploration success of Blocks 48 and 60, and M&A, both international and local.
Any acquisition of stakes will be regulated by transparent screening criteria with regard to strategic fit, financial metrics, and other imperative considerations.
He stated that it involves both the in-house reviews of assurance and third-party reviews of assurance before selecting assets.
He added, “Our ambition is to reach 300,000 barrels of oil equivalent per day by 2030. The pace will depend on the availability of suitable acquisitions, alongside organic growth. If we can accelerate growth earlier, that would be positive, but we must also ensure we meet our financial criteria. We aim to grow gradually while maintaining discipline across all key financial parameters.”
