OQEP’s Plan to Increase Oil & Gas Output to 300,000 boe/d by 2030: Key Opportunities for Investors and Business Owners in Oman
MUSCAT, FEB 25 — OQ Exploration & Production SAOG (OQEP), the majority Omani state-owned upstream energy company, aims to increase its hydrocarbon production—including oil, gas, and condensates—to approximately 300,000 barrels of oil equivalent per day (boe/d) by 2030. This target marks a substantial rise from its average production of 230,000 boe/d at the end of 2024, spanning a portfolio of 14 operating and non-operating upstream assets.
This ambitious production goal forms a key element of OQEP’s newly approved growth strategy, sanctioned by its Board of Directors in December, said Mahmoud al Hashmi, CEO. He explained, “The strategy adopts a balanced growth model focused on domestic development and supported by selective international expansion. Near-term growth will be driven mainly by disciplined mergers and acquisitions, while exploration will play a larger role in the longer term. This approach ensures a balanced portfolio of oil and gas assets generating resilient cash flows to fund future investments and deliver shareholder returns.”
In 2025, OQEP demonstrated a strong operational performance, achieving a 6.9% year-on-year increase in crude oil and condensate production to 21.7 million barrels, up from 20.3 million barrels in 2024. This growth reflects improved field performance and production optimization efforts. However, average realized sales prices dropped by 12.5%, to $70.7 per barrel, from $80.8 per barrel the previous year, in line with global oil price trends. Gas production saw a slight decline of 2.4%, falling to 121.2 billion cubic feet from 124.2 billion cubic feet in 2024.
Financially, OQEP’s revenue decreased by 6.7% to RO 1,159.0 million compared to RO 1,242.8 million in 2024. Gross profit fell 8.7% to RO 657.0 million, while EBITDA declined 6.9% to RO 941.1 million. Net profit after tax experienced a sharper drop of 14.9%, reaching RO 278.0 million, down from RO 326.6 million the prior year.
Ashraf bin Hamed al Mamari, Chairman of the Board, highlighted the company’s overall resilience: “In 2025, the Company achieved strong operational and financial results. Despite a $10.1 per barrel (12.5%) decrease in average oil prices year-on-year, OQEP increased oil and condensate sales by about 1.4 million barrels. This sales growth offset the impact of lower prices on revenue. Net profit remained robust despite the absence of profit from discontinued operations, following the transfer of our 51% stake in Abraj to OQ SAOC in early 2024, along with higher financing costs from a new loan facility initiated in September 2024.”
Special Analysis by Omanet | Navigate Oman’s Market
OQEP’s ambitious target to boost hydrocarbon production to 300,000 boe/d by 2030 signals strong growth potential in Oman’s energy sector, presenting significant opportunities for local businesses and investors focused on upstream activities and energy infrastructure. However, the softened pricing environment and recent profit declines highlight the need for strategic resilience and diversification. Smart investors and entrepreneurs should consider leveraging disciplined M&A and exploration opportunities aligned with OQEP’s balanced growth strategy to capitalize on long-term value creation.
