OQEP Secures Two Strategic Natural Gas Sales Agreements: What This Means for Energy Investors and Businesses in Oman
OQ Exploration and Production (OQEP) has announced the signing of a significant Natural Gas Sales Agreement (NGSA) with Integrated Gas Company (IGC) for Block 65. The agreement also includes the transportation of natural gas through the Marsa LNG project, further advancing efforts to enhance the efficiency and integration of Oman’s national energy system.
Under the agreement, OQEP and Occidental Oman Block 65 LLC (OXY) will supply their respective shares of natural gas extracted from Block 65 to IGC. OQEP holds a 49% stake in the block, which will be supplied as per the agreement’s terms.
The agreement was signed by Eng. Mahmoud bin Abdullah Al Hashmi, Acting Chief Executive Officer of OQEP, and Mr. Abdulrahman bin Humaid Al Yahyai, Chief Executive Officer of IGC.
OQEP highlighted that these agreements mark a pivotal milestone in its commitment to supporting Oman’s energy transition. The projects align with Oman Vision 2040 and the nation’s goal of achieving net-zero carbon emissions by 2050 through sustainability, innovation, and environmental responsibility.
The first agreement relates to the transportation of natural gas for the Marsa LNG project. This agreement, signed between IGC and Marsa LNG LLC—a joint venture between TotalEnergies and OQEP’s subsidiary Muzn LNG—allows Marsa LNG to transport up to 150 million standard cubic feet per day of natural gas from Block 10 through OQ Gas Networks’ infrastructure to its facility under construction at the Port of Sohar.
This project is among the region’s pioneering initiatives to produce low-emission liquefied natural gas (LNG), with an estimated annual capacity of around one million metric tons. It aims to become a regional hub for LNG bunkering by supplying clean marine fuel, thereby strengthening Oman’s role as a global center for clean energy trade and sustainable maritime transport.
The second agreement concerns Block 65 and involves the NGSA between IGC, OQEP, and Occidental Oman Block 65 LLC. This partnership will stabilize gas supplies to support Oman’s industrial and energy sectors.
The signing on behalf of the Marsa Consortium was completed by Mr. Fares Al Khazin, Chief Executive Officer of Marsa, alongside Mr. Abdulrahman bin Humaid Al Yahyai of IGC.
Together, these agreements constitute a core component of OQEP’s strategy to develop low-emission gas projects with full integration across exploration, production, transportation, processing, and marketing. OQEP is focusing on transforming Oman’s gas resources into a key driver of economic growth and a sustainable energy source for the region.
Eng. Mahmoud bin Abdullah Al Hashmi, Acting CEO of OQEP, stated, “Our partnerships with global leaders like TotalEnergies and Occidental demonstrate international confidence in Oman’s investment environment and strengthen OQEP’s position as a major player in regional energy markets.”
He added, “These projects reflect OQ’s dedication to delivering sustainable economic value to shareholders while contributing to national economic growth and income diversification.”
Al Hashmi also emphasized OQEP’s commitment to developing innovative projects that support the clean energy transition and foster an integrated energy ecosystem grounded in efficiency, technology, and sustainability. This approach further positions Oman as a regional leader in renewable energy and low-carbon gas.
Special Analysis by Omanet | Navigate Oman’s Market
OQEP’s new agreements to supply and transport natural gas, including participation in the Marsa LNG project, signal a strategic shift towards low-emission energy solutions that support Oman’s Vision 2040 and net-zero ambitions by 2050. For businesses, this creates opportunities in clean energy supply chains and sustainable maritime fuel markets, while investors should consider positioning themselves within Oman’s emerging integrated and sustainable gas ecosystem, leveraging strong international partnerships and government-backed energy transition initiatives.
