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OQ Exploration and Production (OQEP) is advancing its growth strategy through new upstream investments, domestic asset acquisitions and international partnerships as it works towards achieving production capacity of 300,000 barrels of oil equivalent per day (boe/d) by 2030.
The company recorded average production of 228,200 boe/d during the first half of 2026, representing a 2.7% increase compared with the corresponding period in 2025.
Its expansion strategy focuses on strengthening existing operations in Oman while exploring investment opportunities in international markets through partnerships with established energy companies.
As part of its domestic expansion, OQEP signed an agreement to acquire a 35% interest in Concession Area 27 from Mitsui E&P Middle East for OMR 28.8 million.
The producing concession, operated by Occidental, is expected to contribute approximately 3,500 boe/d to OQEP's production during 2026.
The company has also entered into a concession agreement with Malaysia's Petronas for Offshore Block 18, covering more than 21,000 square kilometres. The agreement follows an earlier memorandum of understanding signed in October 2025.
In Musandam Governorate, OQEP signed an agreement with Turkish Petroleum Corporation for Offshore Block 80. Under the partnership, both companies hold equal 50% interests, with OQEP assuming operatorship.
The arrangement is expected to support further exploration and development of hydrocarbon resources in the governorate.
OQEP has additionally amended its exploration and production sharing agreement for Block 9, where it maintains a 45% participating interest.
Exploration progress in Blocks 60 and 48 is expected to create further opportunities for production growth, while the continued development of the Bisat field in Block 60 remains an important component of the company's operational portfolio.
International expansion represents another important pillar of OQEP's long-term strategy.
Through its subsidiary OQ E&P New Ventures, the company signed a strategic cooperation agreement with Kazakhstan's national oil and gas company, KazMunayGas.
The partnership establishes a framework for evaluating exploration, production and joint investment opportunities in Oman, Kazakhstan and other international markets.
OQEP has also signed a memorandum of understanding with the Libyan Investment Authority to assess potential upstream investments and collaborative opportunities across Oman, Libya and other markets.
These agreements reflect the company's ambition to diversify its geographical presence while applying its technical and operational expertise to new energy markets.
Mahmoud bin Abdullah Al Hashmi, Chief Executive Officer of OQEP, highlighted the importance of maintaining a strong domestic operational foundation while identifying opportunities for expansion.
He emphasised that the company's strategy is centred on increasing value from existing assets and developing partnerships capable of generating long-term returns.
Investment decisions will continue to be assessed against financial, operational and governance requirements to ensure commercial viability and sustainable shareholder value.
OQEP's established partnerships with international energy companies, including BP, Shell, TotalEnergies, Occidental, Petronas and Eni, provide a foundation for pursuing additional exploration and production opportunities.
The company also intends to leverage Oman's international relationships and the expertise developed through its domestic operations to evaluate investments in emerging and established energy markets.
OQEP's longer-term strategy combines organic production growth with acquisitions, concession extensions and new exploration activities.
The company is evaluating opportunities across the Middle East, North and East Africa, and Southeast Asia, with particular emphasis on assets capable of generating sustainable cash flow.
By strengthening domestic production and selectively expanding overseas, OQEP aims to establish a more geographically diversified and operationally efficient upstream portfolio.
The strategy reflects the growing importance of international partnerships, investment discipline and asset optimisation in supporting the future competitiveness of Oman's oil and gas sector.
As OQEP progresses towards its 2030 production target, its expanding portfolio is expected to support the company's commercial growth while extending Omani expertise and investment participation into international energy markets.
