In 2024, OQ delivered two major IPOs, while also ramping up Duqm refinery to 110 per cent capacity, pushing green hydrogen pilot plans, and demonstrating digital innovation and global growth ambitions

OQ’s 2024 performance paints a compelling portrait of an energy powerhouse evolving at pace.

Riding a wave of solid growth, the company delivered not only stellar IPOs but also operational mastery at its state-of-the-art Duqm refinery, moved decisively into green hydrogen, strengthened its balance sheet and embraced digital transformation, all while nurturing Oman’s talent and future ambitions.

OQ’s most striking achievement came via the capital markets. The IPO of its exploration and production arm, OQEP, saw $5.5 billion in demand (2.4 times oversubscribed) the largest in Omani history. Its chemicals arm, OQBI, quickly followed with a $1 billion IPO, oversubscribed 2.1 times.

These listings propelled four IPOs in just two years, dramatically reshaping Oman’s capital market landscape.

The Duqm refinery, a $9 billion greenfield venture and 50/50 JV between OQ and Kuwait Petroleum International, burst beyond expectations.

Having begun operations in late 2023 with design capacity of 230,000 barrels per day (bpd), OQ8 recorded a 10 per cent overperformance, reaching 255,000 bpd; surpassing nameplate capacity and passing a demanding lenders’ reliability test. That unlocked $4 billion in shareholder guarantees.

With output stabilising at more than 110 per cent of design capacity, the refinery offers feedstock flexibility, while exporting over 4.1 million tonnes of refined product in 2024.

Its operational excellence signals OQ’s readiness to scale Duqm as a major regional energy hub.

PIVOTAL GROWTH & FINANCIAL RESILIENCE

OQ’s 2024 performance showed the company navigating complex global dynamics with strategic acumen and financial discipline.

The Group recorded an impressive EBITDA of $2,846 million and a net profit of $1,337 million.

While this represented a slight moderation in profitability compared to the preceding year, primarily due to prevailing unfavourable price environments and operational challenges, the underlying strength of OQ’s core businesses remained evident.

The year also saw consolidated Group Revenue climb to $40,052 million, marking a notable 17 per cent increase from 2023. This growth was largely propelled by a substantial 35 per cent surge in OQ Trading’s volume, underscoring the effectiveness of its market strategies.

Operational excellence remained a cornerstone of OQ’s strategy. For the second consecutive year, the Group reported zero fatalities and maintained a commendable downward trend in lost time injuries, with only four recorded in 2024.

This exceptional safety record underscores a deeply embedded culture of safety and operational integrity across all its facilities.

Furthermore, OQ has been proactive in enhancing its operational efficiency through strategic divestments, as highlighted by Ashraf Al-Mamari, Group CEO of OQ, who noted that achieving these results in 2024 was "a direct outcome of well-defined strategies focused on continually enhancing both operational and financial efficiency, even in the face of global challenges."

ACCELERATING OMAN’S ENERGY TRANSITION

OQ is at the vanguard of Oman’s ambitious energy transition, spearheading projects that are poised to redefine the nation’s energy landscape and contribute significantly to global decarbonisation efforts.

Beyond traditional refining, OQ is making substantial strides in renewable energy, green hydrogen and ammonia initiatives.

Operational excellence remains a cornerstone of OQ’s strategy

A key highlight is the Marsa LNG Project. Notably, this plant will be 100 per cent electrically driven by solar power, meticulously designed to achieve the lowest greenhouse gas emissions intensity globally.

This project exemplifies OQ’s innovative approach to sustainable energy solutions.

OQ’s ammonia plant now adds 365,000 tonnes per year capacity, complementing methanol.

The LPG business caps out at 300,000 MT annually, reinforcing its value chain reach. In Duqm SEZ, a feasibility study by OQ, SABIC and KPI for a petrochemical complex is due in 2025, enhancing hydrocarbon value addition.

OQAE, the group’s renewables arm, accelerated into green hydrogen territory. A green hydrogen pilot is now being deployed, targeting entries into the initial phase of the HyPort Duqm project in SEZAD.

The pilot (10-15 MW) sets the stage for scaling to a 1 GW electrolyser linked to 1.4 GW of renewable power, targeting 60,000 tonnes per year by 2027.

Three major renewable energy projects, totalling 300 MW of solar and wind energy, in Al Wusta and Dhofar, further cement OQ’s commitment to clean energy.

These initiatives are integral to OQ’s environmental objectives and are strategically aligned with Oman’s ambitious 2050 carbon neutrality targets.

OQ Gas Networks (OQGN) made a $2 billion investment for renewable energy projects, specifically targeting the development of green hydrogen and green ammonia facilities.

These include the Hyport Duqm project, a joint venture aiming for 500 MW capacity for green hydrogen and producing 650,000 tonnes of green ammonia annually.

Additionally, in partnership with Korea Gas Corporation (KOGAS), OQ is advancing the Salalah Green Hydrogen Project, targeting 1,000 tonnes of green hydrogen production annually utilising wind and solar power.

The Hydrogen Oman Project (H2Oman), a collaboration with InterContinental Energy and EnerTech, is another pivotal initiative, set to produce up to 25 GW of green hydrogen and ammonia, cementing Oman’s role as a formidable player in the global green hydrogen market.

Recent agreements signed during Oman Sustainability Week 2025 further reinforce OQ’s leadership, including strategic collaborations with Mitsubishi Heavy Industries (MHI) for pre-feasibility studies on carbon capture technologies across OQ’s assets, exploring the full CO2 value chain from capture to utilisation and storage.

OQAE is also commencing the operational phase of three mid-scale renewable energy projects – Riyah-1, Riyah-2 (both wind-based IPPs), and the North Oman Solar IPP – which are expected to come online in 2026, delivering clean energy to both the national grid and oil and gas production facilities under long-term power purchase agreements.

Complementing these large-scale projects, OQ is also nurturing industrial diversification through initiatives like the Ladayn Polymer Park.

The Group entered into seven investment agreements valued at $66 million to establish industrial projects, significantly bolstering local production capabilities and fostering economic growth beyond hydrocarbons.

This aligns with a recent cooperation agreement with Egypt’s ZEINOX to launch a $2.6 million plastics factory in Oman under the Ladayn programme, further strengthening local manufacturing and regional exports.

CULTIVATING INNOVATION, PEOPLE & COMMUNITY

OQ’s commitment extends beyond its operational and financial achievements to encompass a holistic approach to human capital development, digital transformation, and social investment.

Recognising the critical role of technology, OQ launched e-Symphony, a private cloud SAP RISE system, marking it as the first organisation in Oman to implement SAP RISE at such a scale.

This significant step in digital transformation enhances efficiency, improves data analytics for environmental performance monitoring, and streamlines operations across the Group.

The company also initiated the first cohort of its Accelerator Programme, designed to foster collaboration with startups and integrate cutting-edge technologies into its operations, driving continuous innovation.

Investing in its people and the wider community remains a core tenet of OQ’s strategy. The Group achieved an impressive 85 per cent Omanisation rate, underscoring its dedication to national talent development.

OQ welcomed over 240 fresh graduates through the 11th cohort of its "Shabab OQ" graduate development programme and provided internships to more than 890 individuals, nurturing the next generation of Omani leaders and professionals.

In terms of social responsibility, OQ signed two major social investment projects in Duqm and Ibri, focusing on establishing an emergency healthcare facility and a scientific innovation centre.

These initiatives directly contribute to enhancing public welfare and promoting a knowledge-based economy.

Furthermore, OQ’s commitment to local content is evident in its procurement, with OQ Group spending $900 million locally in 2024.

The Group was also awarded the Oman Investment Authority Excellence Award in the Growth and Job Creation category, recognising its substantial contributions to national economic development.

This multifaceted approach highlights OQ’s understanding that true progress is rooted in fostering a skilled workforce and contributing meaningfully to the communities in which it operates.

In 2024, OQ solidified its position as a key regional player by hosting the 18th Annual Gulf Petrochemicals and Chemicals Association (GPCA) Forum for the first time in Oman.

As OQ continues to drive forward with its strategic vision, its multifaceted achievements in financial performance, energy transition, innovation, and social responsibility position it as a beacon of progress in the global energy landscape, contributing effectively to a sustainable future for Oman and beyond.