Sunday 16 / August / 2026
Muscat: OQ Exploration and Production (OQEP) achieved a 19.4 percent growth in its net profit during the first half of 2026, reaching OMR199.02 million. This surpassed the revenue growth rate of 12 percent, reflecting the company's efficiency in controlling costs despite the increase in production levels.
This revenue growth is attributed to the increased sales volume of crude oil and condensates, which reached 11.6 million barrels, in addition to an 8 percent increase in the average realised oil price, reaching $80.9 per barrel.
The company also achieved a 14.1 percent year-on-year increase in adjusted cash flow from operating activities, reaching OMR331.2 million in the first half of 2026, driven by higher commodity prices and increased sales volume.
The audited financial results indicated that the company invested OMR132 million as capital expenditure since the beginning of the current year. This includes OMR128 million in oil and gas assets investments, and OMR3.5 million in exploration expenditures, reinforcing the company's growth strategy and the execution of further future works.
The return on capital employed rose to 67.0 percent, compared to 51.5 percent in the first half of 2025, representing an increase of 30 percent. This confirms the profit growth and the efficiency of capital allocation adopted by the company.
For the first time, the company obtained an investment-grade credit rating of (BBB-) with a stable outlook from the rating agencies Standard & Poor's and Fitch.
Mahmoud Abdullah Al Hashimi, Chief Executive Officer of OQ Exploration and Production, stated that the company's operational and financial results during the first half of the current year achieved a remarkable increase across the company's various business sectors. This was supported by the continued implementation of the growth strategy and the safe and deliberate execution of its operations, alongside the improvement in commodity prices, increased production, and higher oil prices. This enabled the company to achieve higher profits and cash flows, enhance its financial position, and increase its ability to deliver long-term sustainable value to shareholders.
He pointed out that the company committed to strong performance in the areas of Health, Safety, Security, and Environment (HSSE) at a stable and consistent level, while continuing to execute safe and well-planned operations, committing to improving emission intensity, and completing the HSSE action plan ahead of schedule.
He added that total production rose to 228,200 barrels of oil equivalent per day during the first half of 2026, comprising 53 percent oil and 47 percent gas. This represents an increase of 2.7 percent compared to the same period in 2025, resulting from its commitment to achieving operational performance across the company's asset portfolio.
He noted that the company maintained discipline in cost control, keeping the operating cost per barrel below $10 per barrel of oil equivalent.
He affirmed that the comprehensive periodic maintenance work for the gas processing plant in Block 60 was completed within 8 days, which is seven days ahead of schedule, recording more than 45,000 safe working hours without any injuries or incidents.
He explained that the exploration achievements in Blocks 60 and 48 contributed to supporting near-term production growth. Furthermore, the company made significant progress in exploration operations across Blocks 11, 18, 47, and 54 during the first half of 2026.
Regarding the Marsa LNG project, he confirmed that the project made remarkable progress during this period, exceeding 55 percent completion in construction works, which supports the company's long-term strategy for integrated growth in the gas sector.
The CEO of OQ Exploration and Production stated that the Exploration and Production Sharing Agreement (EPSA) for Block 9 was also amended, adding revised financial terms in favor of the company, which allows for investment opportunities and higher production.
The company's investment portfolio grew through the acquisition of a 35 percent stake in Block 27 and the signing of agreements for offshore Block 80 in partnership with the Turkish Petroleum Company, in addition to entering offshore Block 18 in partnership with Petronas.
The company continues to enhance global growth by studying and evaluating investment opportunities based on Memoranda of Understanding with national and international oil companies, which supports its ambitions for long-term sustainable growth and enhances value creation for shareholders.
It is noteworthy that the company's Board of Directors proposed dividend distributions, subject to shareholder approval, to include base dividends for the second quarter of 2026 amounting to OMR57.7 million, scheduled to be paid in September 2026.
