MUSCAT: OQ Exploration and Production SAOG (OQEP), one of the largest producers of oil and gas in the Sultanate of Oman, is banking on a number of exploration initiatives and development projects to support a ramp-up in output from its key Block 60 concession in west-central Oman.
Newly listed on the Muscat Stock Exchange (MSX), following a landmark public subscription covering 25 per cent of its share capital, majority state-owned OQEP — part of OQ Group — reported a net profit of RO 272 million for the nine months ending September 30, 2024, which was up 18 per cent compared to net earnings of RO 230 million for the same period in 2023.
“The increase is due to mainly optimised operating and capital expenditures and higher production than planned,” the Chairman noted in the company’s recent Board of Directors Report.
Oil and gas output averaged 255k barrels of oil equivalent per day (boe/d) during the first nine months of 2024, representing a 3 per cent increase over the target of 253k boe/d for this period.
“The increase in production was a result of higher Oil & Gas coming from both operated assets and joint venture assets. The gas production represents 40 per cent from our total production until end September 2024. It is expected to close the year above the production target,” the Chairman stated.
Going into 2025 and beyond, incremental increases in hydrocarbon output are expected to come from OQEP’s flagship Block 60 concession, which hosts the important Bisat field, among other promising assets.
“Successful additional exploration in Block-60 was completed in Q2 2024 and the development will start early 2025. All additional projects in Block-60 are being executed as per the plan and will be commissioned in Q3 2025,” according to the Chairman.
An uptick in gas production is anticipated in the near future, the Chairman said, stressing that opportunities across its portfolio of operated assets will be pursued as well.
“We will continue maturing new opportunities into our projects funnel equally and identifying new growth horizons in parallel following the company’s strategy. Upcoming growth will be realised from our existing portfolio organic opportunities, and additionally from our new growth endeavours that we are championing at the national level in the new Oman concessions. We will also continue replenishing our reserves base as per set plan and implementing our decarbonisation and clean energy projects following our ESG agenda and business plans,” he added.
Oil, gas and condensate production from OQEP’s operated and non-operated assets averaged 249,000 barrels of oil equivalent per day in 2023, corresponding to its working interest.
This accounted for a 14 per cent share of Oman’s combined hydrocarbon output in 2023.
Other key producing assets include Blocks 61, 9, 10, 53 and 65 — a mix of operated and non-operated concessions. Block 61, with a 30 per cent working interest held by OQEP, currently accounts for a third of Oman’s gas production.
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