New Energy Integration Pacts in Oman: What These Agreements Mean for Investors and Business Growth
MUSCAT, NOVEMBER 3 — OQ Exploration and Production (OQEP), the upstream division of the state-owned integrated energy company OQ, has signed two significant Natural Gas Sales Agreements (NGSAs) with the Integrated Gas Company (IGC). These agreements mark a crucial step in bolstering Oman’s integrated gas value chain and advancing the country’s energy transition objectives under Oman Vision 2040.
The first agreement pertains to Block 65, where OQEP, holding a 49% stake, and Occidental Oman (Oxy) will supply their respective shares of natural gas to IGC. The agreement was formalized by Eng. Mahmoud bin Abdullah al Hashmi, Acting CEO of OQEP, and Abdulrahman bin Humaid al Yahyaei, CEO of IGC.
The second agreement involves the Marsa LNG Project — a joint venture between TotalEnergies EP Oman Development BV (80%) and Almuzun Liquefied Natural Gas LLC, a subsidiary of OQEP (20%). Under this pact, Marsa LNG will transport up to 150 million standard cubic feet per day (MMscf/d) of gas from Block 10 using OQ Gas Networks’ infrastructure to its new facility located at SOHAR Port and Freezone. The forthcoming plant, with an annual production capacity of one million tonnes, is set to become a regional hub for low-emission LNG production and clean marine fuel bunkering, reinforcing Oman’s role as a regional centre for sustainable energy.
These agreements were disclosed by OQEP in filings to the Muscat Stock Exchange (MSX) on November 3, 2025. They form part of a larger series of 19 agreements and memoranda of understanding signed by IGC on November 2, 2025, involving various producers, end-users, and stakeholders. IGC is the state-owned sole aggregator and supplier of natural gas in Oman.
OQEP emphasized that these agreements demonstrate its dedication to driving the energy transition through sustainable gas projects that support industrial growth, decarbonisation, and the efficient use of national energy resources.
Eng. Mahmoud al Hashmi, Acting CEO of OQEP, commented on the partnerships saying, “Collaborating with global leaders such as TotalEnergies and Occidental underscores international confidence in Oman’s investment climate and strengthens OQEP’s position as a key regional player in the evolving energy markets.”
He further remarked that these projects reflect OQ’s commitment to generating sustainable economic value for its shareholders while contributing to national economic growth and income diversification.
Abdulrahman bin Humaid al Yahyaei, CEO of IGC, highlighted the timing and strategic importance of the agreements, stating, “These deals come at a pivotal moment as Oman advances confidently toward the ambitions outlined in Oman Vision 2040.”
Echoing this sentiment, Ashraf al Mamari, CEO of OQ Group, noted, “The significance of these agreements is in their embodiment of the group’s business integration — spanning exploration, production, gas supply, and downstream sectors that support the country’s manufacturing industries.”
Collectively, these agreements exemplify strong collaboration within Oman’s energy sector, enhancing operational efficiency, environmental stewardship, and sustainable development across the gas industry.
Special Analysis by Omanet | Navigate Oman’s Market
The recent Natural Gas Sales Agreements signed by OQEP and IGC underscore Oman’s strategic push to integrate and modernize its energy value chain, aligning closely with Oman Vision 2040’s sustainability and diversification goals. For businesses, this presents opportunities in clean energy infrastructure and industrial growth, while investors should consider the long-term potential of Oman as a regional hub for low-emission LNG and clean marine fuel, positioning themselves early in this evolving green energy landscape. However, the success of these ventures hinges on continued international partnerships and regulatory support to mitigate risks associated with market dynamics and transition uncertainties.
