MUSCAT: OQ Exploration and Production (OQEP) has posted audited revenues of RO 1.2 billion for the financial year ended December 31, 2025, delivering EBITDA of RO 941 million and a robust margin of 81 per cent. Adjusted cash flow from operations increased by 7.5 per cent to RO 540.5 million, while return on operating capital stood at 51 per cent, underscoring operational efficiency in a softer pricing environment.
Chief Executive Officer Mahmoud bin Abdullah al Hashmi said the results demonstrated disciplined cost management and resilient performance despite a 12.5 per cent decline in average oil prices during the year. Growth in oil and condensate sales volumes, combined with stable gas output, supported a return on capital employed exceeding 50 per cent.
On the operational front, the company strengthened its asset base. In Block 60, it completed the expansion of the Basat C oil processing facility, lifting crude processing capacity to 95,000 barrels per day and water handling capacity to more than 800,000 barrels per day. The Basat power plant was also commissioned and connected to the national grid, improving supply stability while lowering operating expenditure and reducing carbon emissions.
Construction progress on the Marsa LNG bunkering project surpassed 39 per cent by year-end. To underpin the initiative, long-term gas sales agreements were secured for Blocks 65 and 10. The company also signed four exploration and production sharing agreements, including extensions for Blocks 47 and 48 and a new partnership with Genel Energy in Block 54, with improved fiscal terms extending to 2050.
Average production reached 224,000 barrels of oil equivalent per day, split between 54 per cent oil and condensate and 46 per cent gas.
Shareholder returns remained central to strategy, with RO 275 million distributed in dividends and 27.5 million shares repurchased under a buyback programme. A proposed fourth-quarter dividend of 7.23 baisa per share is subject to approval at the Annual General Meeting.
Looking ahead, the company aims to raise production capacity to around 300,000 barrels of oil equivalent per day by 2030, financed through internal cash flows and prudent borrowing, while maintaining net debt below 1.5 times EBITDA and targeting dividend distributions of 25–35 per cent of operating cash flows.
Source:
Oman Observer
