Monday 02 / March / 2026
Muscat: OQ Exploration and Production (OQEP) on Monday announced its audited financial results for the financial year to 31 December 2025 and an update to its strategy. The financial highlights indicate that revenue stood at OMR1.2 billion with an earnings (profit) before interest, tax, depreciation and amortisation (EBITDA) of OMR941 million at a 81% margin.
Adjusted Cashflow from operations increased 7.5% to OMR540.5 million, while Return on Capital Employed “ROCE” stood at 51% .
Operational highlights include achieving a total production rate of 224 kboepd (oil and condensate 54%; gas 46%).
OQEP successfully delivered two major projects. The Bisat C Expansion at Block 60, which increased the total processing capacity to 95,000 bbl/day oil and over 800,000 bbl/day water, and Bisat Power Plant which will supply a reliable power from the Government network. As a result, operational costs were lowered and Greenhouse Gas emissions optimized.
Marsa LNG Bunkering project progress goes as per the plan and on budget with more than 39% completion achieved.
Future gas revenues were secured by signing a long-term Gas Sales Agreement “GSA” for Block 65 with the Integrated Gas Company SAOC “IGC” and signed GSA to supply Marsa LNG in Sohar with gas from Block 10.
The Company distributed approximately OMR275 million of dividends in cash. As many as 27.5 million shares were purchased to date via share buyback programme to further enhance shareholder value.
The Q4 2025 dividend proposal of 7.23 baisa per share as cash dividend is to be approved at the Annual General Meeting.
The Company intends to continue the dividend framework established in the 2024–2026, as detailed in the IPO prospectus, while remaining adaptive to market developments and evolving business needs.
Mahmoud Al Hashmi, Chief Executive Officer, OQEP, commented: “The 2025 results demonstrate OQEP's ability to operate effectively in challenging and volatile market conditions. The Company achieved substantial growth in oil and condensate sales, effectively offsetting a 12.5% decline in realised oil prices. OQEP's efficient production methods and operational excellence contributed to an industry-leading Return on Capital Employed exceeding 50%.”
“Operationally, OQEP made significant progress during the year in progressing growth across its portfolio of high-quality assets. At Block 60, The Bisat C Expansion Facility marks a strategic enhancement to OQEP’s performance, significantly increasing the total oil processing capabilities to 95,000 bbl per day (oil) and over 800,000 bbl/day total water processing capacity. Furthermore, Bisat Power Plant was delivered which connects Bisat to the national grid, enhance the power supply reliability, reduce operational costs and significantly reduce emissions. In addition, Marsa LNG Bunkering project is progressing as plan with more than 39% completed by the end of December 2025.”
“The Company secured stable, long-term gas agreements for two of its blocks, Block 65 and Block 10, for the future of Marsa LNG utilisation. We also secured four new and amended EPSAs during the year, a significant achievement. The EPSAs include exploration extensions to Blocks 48 and 47; a new partnership with Genel Energy for Block 54; and enhanced fiscal terms in Block 53’s EPSA extension to 2050.”
Al Hashmi added that, “We continued to establish new partnerships in Oman, including an agreement with Genel Energy in Block 54. Additional collaborators, such as the Turkish Petroleum Corporation (TPAO), China National Petroleum Corporation (CNPC), and Petronas, entered into Memoranda of Understanding (MoUs) with OQEP. Subsequently, after the reporting period, our MoU with Petronas advanced to the successful execution of a Concession Agreement for offshore Block 18.”
He further noted that, “OQEP generated substantial value for its shareholders in the financial year 2025. OQEP has distributed approximately OMR275 million dividends including Performance linked Dividend during the year. Additionally, as part of the ongoing buyback program, OQEP acquired 27.5 million of its own shares to further benefit its shareholders”.
“We have a clear vision to grow OQEP, creating a global energy champion which will Energize Sustainable Progress: delivering reliable, lower-carbon energy and resilient value. OQEP’s Growth Strategy will focus on increasing production ambition to the ~300 kboe/day level by 2030. The strategy adopts a balanced growth model with domestic growth complemented by international expansions through M&A”.
Mahmoud Al Hashmi, Chief Executive Officer, OQEP said that “The growth strategy will be funded through OQEP’s internal cash flows and additional new debt, which will be maintained at a prudent level of less than 1.5x Net Debt to EBITDA. OQEP shareholders will continue to benefit from its growth, with shareholder distributions anticipated to be at a level equivalent to 25-35% of Cashflow from Operations.”
“Our growth plan will build on Oman’s significant potential, utilising OQEP’s operational excellence to create a National Upstream Champion that will support the strategic objectives of Oman Vision 2040, generating value for its stakeholders through its growth and innovation.”
In 2025, the Company delivered strong operational and financial results. Despite a decrease in average oil prices by $10.1 per barrel (12.5%) compared to the same period in 2024, the Company increased oil and condensate sales by approximately 1.4 million barrels. This sales growth effectively offset the revenue impact of lower oil prices.
Net Profit remained robust, even in the absence of Profit from Discontinued Operation following the transfer of the Company’s 51% stake in Abraj to OQ in the first half of 2024. In addition, the Company secured a new loan facility in September 2024, with the associated financing costs fully reflected in the 2025 results.
The balance sheet remains solid and broadly unchanged on a year-over-year basis, maintaining a strong equity base and stable net leverage. The Company continues to apply a disciplined approach to capital allocation; balancing shareholder returns with long-term asset sustainability. This approach was reinforced by the introduction of Treasury shares to enhance long-term shareholder value.
Strong cash flow generation enabled the Company to report net cash from operating activities of OMR523 million, an increase of 5.3% over the previous year despite lower profit before tax, supporting the confident distribution of OMR275 million in dividends. Delivering a ROCE of 50.6%, top-quartile performance for the global exploration and production sector.
OQEP has recently established the new growth strategy, aspiring to reach higher production rates up to 300 kboepd level by 2030. This represents an increase of 34% relative to its current production of 224kboepd. The growth strategy stems from OQEP’s continued domestic expansions, complemented by targeted acquisitions in Oman.
In terms of funding and shareholder value, OQEP is committed to maintain Net Debt to EBITDA below 1.5 times, ensuring a robust financial position at all times while funding the potential new future growth projects. OQEP will continue to build up its financial cash generation ability and moreover maintain reserves replenishment at the 100% level. OQEP will continue to deliver a sustainable shareholders return for 2027 and beyond in line with the previous years with dividend payout from 2027 - 2029 ranging between 25-35% of cashflow from operations (CFFO).
