OQEP Reports RO 71.9mn Q1 Profit Despite Weaker Oil Prices: What This Means for Investors and Business Growth in Oman
MUSCAT — OQ Exploration & Production (OQEP), the upstream energy subsidiary of OQ Group, announced a net profit of RO 71.9 million for the first quarter of 2026. This result underscores the company’s resilience amid lower global oil and gas prices and ongoing volatility in regional energy markets.
For the three months ending March 31, 2026, OQEP’s net profit slightly declined from RO 74.867 million recorded in the same period in 2025. Despite a significant drop in crude oil prices, the company maintained profitability through disciplined cost management, enhanced operational efficiency, and increased hydrocarbon sales volumes.
Ashraf Hamed Al Mamari, Chairman of OQEP’s Board of Directors, noted, “The company mitigated the 16 percent decline in oil prices compared to Q1 2025 by boosting sales volumes and optimizing its cost structure.” Specifically, oil sales volumes rose by 21 percent, while gas sales volumes increased by 17 percent over the previous year’s first quarter. Consequently, OQEP achieved its targeted profitability with a net profit of RO 71.9 million.
Global energy markets experienced a downturn in early 2026, with the average price of Omani crude falling to approximately $62.90 per barrel in Q1, down from around $75.30 per barrel in the same period last year. However, oil futures rebounded in March due to disruptions in regional energy supply chains, contributing to short-term price volatility.
OQEP also reported continued progress in its growth and exploration initiatives during the quarter. Development work in Block 60 advanced, with positive results from evaluation tests in the Haushi reservoirs. In Block 48, an extended well test was conducted in preparation for a planned appraisal program in Q2 2026.
Further, the company highlighted strategic expansion efforts, notably following a memorandum of understanding signed with Malaysia’s Petronas late last year. This agreement led to a new concession arrangement involving OQEP, Petronas, and Oman’s Ministry of Energy and Minerals for offshore Block 18. OQEP described this concession as a major offshore exploration opportunity expected to attract further investment to Oman’s oil and gas sector and stimulate wider economic growth in the Sultanate.
Meanwhile, construction of the Marsa LNG marine bunkering project progressed steadily, reaching over 48 percent completion during the quarter.
تحلیل ویژه از عمانت | بازار عمان را کشف کنید
OQ Exploration & Production’s ability to sustain strong profitability despite a 16% drop in oil prices underscores the resilience of Oman’s upstream energy sector through disciplined cost management and increased sales volumes. The strategic partnerships and new offshore concessions, notably with Petronas, signal significant growth opportunities that can attract investment and bolster economic diversification. Smart investors and entrepreneurs should closely monitor these developments, positioning themselves to capitalize on emerging exploration projects and LNG infrastructure expansions.
