MUSCAT, MARCH 25
OQ Exploration & Production (OQEP), one of Oman’s largest oil and gas firms, has been tapped by the Ministry of Energy and Minerals to assist in the joint marketing of as many as 11 new concession blocks envisaged for launch as part of multiple bid rounds during 2025.
The new mandate underscores majority state-owned OQEP’s increasingly prominent presence in Oman’s vital upstream energy sector. The company currently oversees a high-quality portfolio of 15 upstream oil and gas assets in Oman, ranging from those in the development and production phase to others being appraised for commerciality or undergoing exploration programmes. The list includes six producing assets, which contributed a significant 228k barrels of oil equivalent per day (boepd) of hydrocarbons in 2024 –equivalent to around 14 per cent of Oman’s total oil and gas production.
Publicly-traded OQEP’s additional role in the marketing of Oman’s open acreage coincided with the unveiling last month of a new Licensing Round offering three onshore concessions - Block 43A, Block 66, and Block 36. In a filing to the Muscat Stock Exchange (MSX) at the time, the company disclosed that the licensing round was launched in collaboration with OQEP, as well as Scotiabank – Canada’s leading international bank and financial services provider.
“This announcement comes as part of the cooperation framework between OQEP and the Ministry of Energy and Minerals, which aims to bring new investments into the exploration and production in Oman. On this occasion, OQEP would like to express its greatest gratitude to the Ministry of Energy and Minerals for its trust in OQEP,” Ahmed al Azkawi, CEO – OQEP, stated in the filing.
Elaborating on the scale of this collaboration with the Ministry, the CEO revealed in the company’s 2024 Annual Report that it would assist in the marketing of a further 11 open concession areas in 2025.
“The Ministry of Energy and Minerals has announced the launch of new investment opportunities in the oil and gas Blocks 36, 43A and 66 in cooperation with OQEP and Scotiabank, with 11 additional blocks underway in 2025, which aims to bring new investments in the exploration and production sector in Oman. The award is subject to requisite formalities including new concession agreements and new partnerships,” Al Azkawi stated in the MDA report.
Working alongside the Ministry and OQEP in the marketing of the new Omani acreage is Toronto-based Scotiabank, billed as a global leader in oil and gas M&A advisory, with specialized finance and technical professionals dedicated to the energy sector.
More recently, OQEP added its 15th asset - Block 54 - to its expanding upstream portfolio. It follows the signing by the Ministry of an Exploration and Production Sharing Agreement (EPSA) with the partnership of OQEP (with a 60 per cent operating interest) and London-based Genel Energy (with 40 per cent non-operating interest) to develop the 5,632 km2 concession in Al Wusta Governorate.
Oman Observer is now on the WhatsApp channel. Click here
