OQ Exploration and Production (OQEP), Oman’s leading exploration and production company, announced its audited financial results for the year ended 31 December 2025, alongside a strategic update.

 

The company delivered strong financial performance, reporting revenue of $1.2 billion and EBITDA of $941 million, representing an 81 per cent margin.

 

Adjusted cash flow from operations rose 7.5 per cent to $540.5 million, while net cash from operating activities increased 5.3 per cent year-on-year to $523 million.

 

Return on Capital Employed reached 50.6 per cent, placing OQEP in the top quartile globally for the sector.

 

Despite a 12.5 per cent decline in average oil prices, higher oil and condensate sales offset revenue pressures.

 

The balance sheet remained solid, with disciplined capital allocation supporting $275 million in dividends and the repurchase of 27.5 million shares.

 

A Q4 2025 dividend of 7.23 Baiza per share has been proposed, and the company will continue its 2024–2026 dividend framework into 2026.

 

Operationally, OQEP achieved production of 224 kboepd (54 per cent oil and condensate, 46 per cent gas).

 

Major milestones included the Bisat C Expansion and Bisat Power Plant at Block 60, lowering costs and optimising emissions, and 39 per cent completion of the Marsa LNG Bunkering project.

 

The company secured long-term gas sales agreements, extended and signed multiple EPSAs, and strengthened partnerships, including a post-period offshore Block 18 concession with Petronas.

 

Looking ahead, OQEP aims to increase production to 300 kboepd by 2030 through domestic expansion and targeted acquisitions, while maintaining net debt-to-EBITDA below 1.5x and sustaining long-term shareholder returns.

 

Mahmoud Al Hashmi, Chief Executive Officer, OQEP, commented: “The 2025 results demonstrate OQEP's ability to operate effectively in challenging and volatile market conditions. The Company achieved substantial growth in oil and condensate sales, effectively offsetting a 12.5 per cent decline in realised oil prices. OQEP's efficient production methods and operational excellence contributed to an industry-leading Return on Capital Employed exceeding 50 per cent.”

 

“Operationally, OQEP made significant progress during the year in progressing growth across is portfolio of high-quality assets. At Block 60, The Bisat C Expansion Facility marks a strategic enhancement to OQEP’s performance, significantly increasing the total oil processing capabilities to 95,000 bbl per day (oil) and over 800,000 bbl/day total water processing capacity. Furthermore, Bisat Power Plant was delivered which connects Bisat to the national grid, enhance the power supply reliability, reduce operational costs and significantly reduce emissions. In addition, Marsa LNG Bunkering project is progressing as plan with more than 39 per cent completed by the end of December 2025.”

 

“The Company secured stable, long-term gas agreements for two of its blocks, Block 65 and Block 10, for the future of Marsa LNG utilization. We also secured four new and amended EPSAs during the year, a significant achievement. The EPSAs include exploration extensions to Blocks 48 and 47; a new partnership with Genel Energy for Block 54; and enhanced fiscal terms in Block 53’s EPSA extension to 2050.”

We continued to establish new partnerships in Oman, including an agreement with Genel Energy in Block 54. Additional collaborators, such as the Turkish Petroleum Corporation (TPAO), China National Petroleum Corporation (CNPC), and Petronas, entered into Memoranda of Understanding (MOUs) with OQEP. Subsequently, after the reporting period, our MOU with Petronas advanced to the successful execution of a Concession Agreement for offshore Block 18.

 

“OQEP generated substantial value for its shareholders in the financial year 2025. OQEP has distributed approximately  275 million dividends including Performance linked Dividend during the year. Additionally, as part of the ongoing buyback programme, OQEP acquired 27.5 million of its own shares to further benefit its shareholders”.

 

“We have a clear vision to grow OQEP, creating a global energy champion which will Energise Sustainable Progress: delivering reliable, lower-carbon energy and resilient value. OQEP’s Growth Strategy will focus on increasing production ambition to the ~300 kboe/day level by 2030. The strategy adopts a balanced growth model with domestic growth complemented by international expansions through M&A”.

 

“The growth strategy will be funded through OQEP’s internal cash flows and additional new debt, which will be maintained at a prudent level of less than 1.5x Net Debt to EBITDA. OQEP shareholders will continue to benefit from its growth, with shareholder distributions anticipated to be at a level equivalent to 25-35 per cent of Cashflow from Operations.”

“Our growth plan will build on Oman’s significant potential, utilising OQEP’s operational excellence to create a National Upstream Champion that will support the strategic objectives of Oman Vision 2040, generating value for its stakeholders through its growth and innovation.”  -OGN/TradeArabia News Service