OQEP’s Strategic Growth in Oman’s Upstream Energy Sector: Opportunities for Investors and Entrepreneurs
MUSCAT, FEB 27 – OQ Exploration & Production SAOG, a majority Omani state-owned enterprise, has built a diverse portfolio of 14 upstream assets, which includes both operating and non-operating fields in Oman. The company is positioned to enhance its role in the nation’s oil and gas sector, particularly through its involvement in marketing open hydrocarbon acreage.
The Ministry of Energy and Minerals has engaged OQEP to promote up to 15 open blocks as part of an initiative announced last year. Scotiabank is providing financial advisory services to support this marketing effort.
Ashraf bin Hamed al Maamari, Chairman of the Board of Directors at OQEP, remarked, “In February 2025, the Ministry announced new investment opportunities in Oman’s oil and gas sector. In collaboration with the Ministry and its adviser, Scotiabank, we are marketing 15 blocks to attract further investment in exploration and production,” as detailed in his Chairman’s Report for the fiscal year ending December 31, 2025.
Among the notable licenses being actively marketed are Blocks 18, 36, 43A, and 66. Recently, Block 18 was awarded to a joint venture between OQEP, whose wholly-owned subsidiary Batinah Offshore LLC holds a 30% non-operating interest, and PC Oman Ventures Ltd, a subsidiary of Malaysian state energy firm Petronas, which possesses a 70% operating stake.
The Ministry is currently evaluating offers for the remaining blocks—36, 43A, and 66—part of an initiative titled Project Sun, with awards expected within the year according to OQEP officials.
Block 36, the largest of the border licenses, spans 18,557 km² in the Rub Al Khali desert, where exploration has been minimal, involving basic 2D seismic work and a single well, Hayah-1, which showed minor gas indications. To the north, Block 66 covers 4,898 km² on the eastern edge of the Rub Al Khali basin, regarded as a frontier exploration area with geological features akin to those of producing fields in neighboring Saudi Arabia. Block 43A consists of 6,920 km² in Al Buraimi Governorate and has potential conventional oil prospects, benefiting from its proximity to existing producing fields.
In addition, OQEP is making strides within its upstream portfolio. The company’s flagship asset, Block 60, has seen the completion of two projects focused on improving hydrocarbon output and operational reliability. The Bisat C Expansion Facility has increased oil processing capacity to 95,000 barrels per day and water processing capacity to over 800,000 barrels per day, contributing to total production exceeding 70,000 barrels of oil equivalent per day by the end of 2025.
Furthermore, OQEP aims to capitalize on its 49% working interest in natural gas from Block 65, which is managed by Occidental Oman. This plan follows a Gas Sales Agreement established between the partners and Integrated Gas Company (IGC), the sole shipper of natural gas in Oman.
Special Analysis by Omanet | Navigate Oman’s Market
The expansion of OQEP’s upstream portfolio and its collaboration with the Ministry of Energy and Minerals to market 15 open hydrocarbon blocks signal significant opportunities for investment in Oman’s oil and gas sector. Smart investors should consider engaging in the approaching tenders, particularly for promising fields like Block 36 and Block 66, which hold potential for substantial returns. However, they must remain cognizant of the competitive landscape as both regional and international players intensify their focus on Oman’s exploration opportunities.
