SALALAH: OQ Exploration & Production (OQEP) held an IPO roadshow in Salalah yesterday to promote its landmark share offering. The event, hosted at the Sultan Qaboos Complex for Youth Culture & Entertainment, was attended by HH Sayyid Marwan Bin Turki al Said, Governor of Dhofar, alongside prominent officials, dignitaries, and local citizens. The roadshow marks an important milestone for OQEP, as it seeks to expand its ownership base and engage with investors from across the country.
Eng Ahmed bin Said al Azkawi, CEO of OQEP, underscored the significance of the IPO, describing it as the largest share offering in Oman’s history. This pioneering initiative in the oil and gas exploration and production sector is a crucial step toward enhancing Omani participation in national enterprises. In alignment with Islamic Sharia principles, OQEP has introduced a 10% discount on share prices for Omani citizens, setting it apart from non-citizen entities and individual investors.
The IPO is closely aligned with the government's economic diversification policies under Oman Vision 2040, which emphasizes citizen engagement in the private sector and encourages the growth of the non-oil economy. By broadening the ownership of government-linked companies, OQEP aims to provide citizens with the opportunity to invest in Oman’s upstream energy sector, further empowering the private sector to play a leading role in driving economic growth.
Sheikh Naif bin Hamed Fadel, Chairman of the Board of Directors of the Chamber in Dhofar Governorate, emphasized that the IPO represents a significant opportunity for Oman’s economic diversification efforts. He highlighted the crucial role IPOs play in empowering the private sector and attracting both national and foreign investments. As Oman’s energy sector evolves in line with global economic trends, Shaikh Naif pointed out that the OQEP IPO is expected to attract significant interest from investors, driven by the company’s strong market position and promising profit outlook.
Mahmoud bin Abdullah al Hashimi, Chief Operating Officer of OQEP, provided an overview of the company's operations, noting that OQEP’s average daily production has increased nearly 14-fold since its inception, reaching 250,000 barrels of oil equivalent per day (kboe/d) on a working interest basis by 2023. The company now accounts for approximately 14% of Oman’s total oil, gas, and condensate production, making it a key player in the national energy landscape.
Al Hashimi also highlighted OQEP’s exclusive role as the only fully government-owned operator in the upstream oil and gas industry. This strategic positioning not only supports the government’s energy security objectives but also aligns with broader efforts to meet energy transition goals. As the world moves towards cleaner and more sustainable energy sources, OQEP is focused on enhancing energy efficiency, reducing carbon emissions, and investing in asset improvements to ensure long-term growth.
Chief Financial Officer Jaber bin Rashid al Naamani presented OQEP’s dividend distribution plans, announcing that dividends will be disbursed quarterly, with the first payment scheduled for December 2023. He confirmed that dividends for the fourth quarter of 2024 will be distributed in March 2025. OQEP aims to distribute RO 230.7 million annually for 2025 and 2026, a testament to the company’s strong financial outlook and commitment to delivering value to shareholders.
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