Muscat: OQ Exploration and Production (OQEP) recorded a 19.4 percent increase in its net profit for the first half of 2026, reaching RO 199,029,000. This growth outpaced the company's revenue increase of 12 percent, showcasing efficient cost management amid rising production levels.
According to Oman News Agency, the growth in revenue is largely attributed to higher sales volumes of crude oil and condensates, totaling 11.6 million barrels, coupled with an 8 percent hike in the average realized oil price, which reached USD 80.9 per barrel. Additionally, the company saw a 14.1 percent year-on-year rise in adjusted cash flow from operating activities, amounting to RO 331.2 million, driven by increased commodity prices and sales volume.
The audited financial results reveal that OQEP invested RO 132 million in capital expenditure since the beginning of 2026, with RO 128 million allocated to oil and gas assets and RO 3.5 million towards exploration expenditures. This investment strategy aligns with the company's growth objectives and future project plans.
The return on capital employed rose to 67.0 percent, up from 51.5 percent in the first half of 2025, indicating improved profit growth and effective capital allocation. OQEP also secured an investment-grade credit rating of (BBB-) with a stable outlook from both Standard and Poor's and Fitch for the first time.
Mahmoud Abdullah Al Hashimi, CEO of OQEP, highlighted the company's operational and financial achievements in the first half of the year. He attributed the growth to the execution of the company's strategy, improved commodity prices, increased production, and higher oil prices. The company focused on maintaining strong Health, Safety, Security, and Environment (HSSE) performance, executing operations safely, and improving emission intensity.
Total production increased to 228.2 thousand barrels of oil equivalent per day, consisting of 53 percent oil and 47 percent gas, marking a 2.7 percent increase from the previous year. The company successfully managed its operating costs, keeping them below USD 10 per barrel of oil equivalent.
Comprehensive maintenance of the gas processing plant in Block 60 was completed ahead of schedule, with over 45,000 safe working hours recorded without incidents. Exploration efforts in Blocks 60 and 48 supported near-term production growth, while significant progress was made in Blocks 11, 18, 47, and 54.
Progress on the Marsa LNG project exceeded 55 percent completion, aligning with the company's strategy for growth in the gas sector. Additionally, an amendment to the Exploration and Production Sharing Agreement for Block 9 introduced revised financial terms favoring the company.
OQEP expanded its investment portfolio by acquiring a 35 percent stake in Block 27 and signing agreements for offshore Block 80 with the Turkish Petroleum Company, along with entering offshore Block 18 in partnership with Petronas. The company continues to explore global growth opportunities through Memoranda of Understanding with national and international oil firms.
The Board of Directors proposed a dividend distribution, pending shareholder approval, amounting to RO 57.7 million for the second quarter of 2026, with payments scheduled for September 2026.
