OQEP’s $800–900 Million Capex Projects for 2026: What This Means for Investment Opportunities in Oman
MUSCAT, MAR 10 — OQ Exploration & Production SAOG (OQEP), the dominant Omani state-owned upstream energy firm, projects capital expenditures between $800 million and $900 million for its extensive portfolio of both operating and non-operating assets in Oman throughout 2026.
As a publicly traded entity under the OQ Group, OQEP manages 14 upstream assets, which collectively produced an average of 224,000 barrels of oil equivalent per day (boe/d) in 2025, reflecting its net working interest. Executives aim for production levels to remain between 220,000 and 230,000 boe/d in 2026, with oil comprising 54% and gas 46% of this total—a strategy designed to offer flexibility during periods of fluctuating oil prices.
During a recent meeting with investors, CFO Jaber al Noumani emphasized the company’s objective to keep operating costs under $10 per barrel of oil equivalent. The forecast for capital expenditure stands at $0.8 billion to $0.9 billion, aligned with the net working interest.
OQEP’s net debt-to-EBITDA ratio is currently approximately 0.24x, providing substantial scope for future growth. As part of a five-year growth strategy, the company aims to achieve production levels of around 300,000 boe/d by 2030. This prudent capital structure is expected to target 1.0x net debt-to-EBITDA under prevailing oil prices, with provisions for up to 1.5x in adverse price conditions.
Chief Commercial Officer Dr. Anwar al Kharusi detailed the company’s five-year strategy (2026–2030), founded on essential pillars: enhancing cash flow, increasing production and reserves, sustaining growth beyond 2030, and gradually diversifying internationally.
Dr. al Kharusi identified two primary growth focuses:
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Maximizing domestic opportunities in Oman by developing resources and advancing integrated oil, gas, and LNG projects, including the ongoing Marsa LNG bunkering project at SOHAR Port and Freezone.
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Building resilience and expanding internationally, leveraging government support and partnerships with International Oil Companies (IOCs) to penetrate relevant markets across the Middle East and North Africa, effectively transferring knowledge and experience gained in Oman.
Commenting on growth strategy, CEO Hamoud al Hashmi noted that it will blend organic growth—particularly successes in Blocks 48 and 60—with mergers and acquisitions both locally and abroad. Acquisitions will undergo rigorous screening based on strategic fit, financial metrics, and other critical aspects, complemented by internal and third-party reviews.
“Our ambition is to reach 300,000 boe/d by 2030. The pace of this growth will depend on the availability of suitable acquisitions alongside organic development. Accelerating growth sooner would be beneficial, yet we must adhere to our financial benchmarks. We are committed to a gradual growth trajectory while ensuring fiscal discipline across all key financial indicators,” he emphasized.
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OQEP’s planned capital expenditures of $800-$900 million and target production increase to 300,000 boe/d by 2030 signal robust growth potential in Oman’s energy sector. This creates فرصتهایی برای کسبوکارها in related industries, particularly in LNG projects and infrastructure development, while also emphasizing the need for smart investors to stay vigilant about asset acquisitions within a framework of strict financial discipline. Companies must be prepared to capitalize on both domestic projects and international expansion to thrive amidst fluctuating oil prices.
