OQEP Acquires 35% Stake in Oman’s Block 27: Key Opportunities and Impacts for Investors and Business Owners
MUSCAT, APRIL 15 — OQ Exploration and Production (OQEP) has signed an Asset Sale and Purchase Agreement (ASPA) to acquire a 35 percent non-operated participating interest in Block 27, further enhancing its upstream oil and gas portfolio in Oman, according to a filing with the Muscat Stock Exchange (MSX).
The agreement, finalized on April 14, 2026, is with Mitsui E&P Middle East B.V. (MEPME), a wholly owned subsidiary of Japan’s Mitsui & Co. This transaction represents a strategic consolidation of domestic energy assets under OQEP. The deal, valued at $28.8 million, has an economic effective date of January 1, 2025, and is subject to customary approvals, including those from the Ministry of Energy and Minerals and the issuance of a Royal Decree.
Block 27, operated by Occidental Petroleum which holds a 65 percent participating interest, is a producing asset with a concession agreement valid until 2035, offering long-term production certainty. OQEP anticipates net additional production of approximately 3.5 thousand barrels of oil equivalent per day (kboepd) from this acquisition in 2026.
OQEP stated that the acquisition underscores its focus on value-accretive opportunities within Oman and reinforces its role as a key player in the country’s upstream sector. The company highlighted this transaction as part of its ongoing commitment to strengthen its domestic portfolio and enhance value through strategic acquisitions.
CEO Mahmoud al Hashmi emphasized OQEP’s broader mandate, affirming the company’s commitment to delivering sustainable value for Oman and its shareholders through efficient resource development and responsible energy production.
The deal aligns with a broader trend of portfolio rebalancing among international energy firms operating in Oman. Earlier in 2026, Mitsui & Co announced its decision to divest certain onshore oil and gas interests in Oman, including holdings in Blocks 3&4 and 9, as part of a wider portfolio restructuring strategy. Having entered Oman’s upstream sector in 2002 through MEPME, Mitsui had progressively expanded its presence across several concession areas, including Block 27. Its exit from select assets reflects a strategy to strengthen earnings and reallocate capital while continuing to support stable energy supply and global sustainable development objectives.
For OQEP, this acquisition is a strategic move to deepen its domestic asset base amid a stable regulatory environment and robust hydrocarbon demand. Adding a producing asset with established operatorship and long-term concession validity is expected to boost cash flow stability and operational scale.
The transaction further highlights Oman’s ongoing appeal as an investment destination in upstream oil and gas, supported by clear regulatory frameworks and ongoing efforts to optimize resource development.
Pending regulatory approvals, the Block 27 acquisition is set to strengthen OQEP’s position in driving growth and value creation within Oman’s oil and gas industry.
Special Analysis by Omanet | Navigate Oman’s Market
OQ Exploration and Production’s strategic acquisition of a 35% stake in Block 27 signals a bold consolidation of domestic energy assets, enhancing production capacity and long-term value in Oman’s upstream sector. For businesses and investors, this reflects a stable regulatory environment and growing confidence in Oman’s energy market, creating opportunities to capitalize on resilient cash flows and scale. Smart investors should prioritize partnerships and acquisitions within Oman’s well-regulated hydrocarbon sector to leverage sustained demand and government support.
