MUSCAT - OQ Exploration & Production SAOG (OQEP) — the majority Omani state-owned upstream energy company — anticipates capital expenditures totalling between $800 million and $900 million across its expansive portfolio of operating and non-operating assets in the Sultanate of Oman during 2026.

The publicly listed company — part of OQ Group — currently oversees a portfolio of 14 upstream assets, which contributed to a hydrocarbon output averaging 224,000 barrels of oil equivalent per day (boe/d) in 2025, corresponding to its net working interest.

According to company executives, production is targeted at between 220,000 and 230,000 boe/d in 2026 as well, with oil accounting for 54% of this output and gas making up the remaining 46% — a balanced portfolio that provides flexibility during periods of oil price weakness.

Addressing investors last week, Jaber al Noumani, Chief Financial Officer, said the company aims to maintain operating costs below $10 per barrel of oil equivalent. Capital expenditure is expected to average between $0.8 billion and $0.9 billion at the net working interest level.

In terms of capital structure, OQEP’s current net debt-to-EBITDA ratio of around 0.24x provides significant headroom for growth. As the company pursues a five-year growth strategy and targets production of around 300,000 boe/d by 2030, a prudent capital structure is envisaged, targeting around 1.0x net debt-to-EBITDA at current oil prices and below 1.5x under stress oil price scenarios, he noted.

Dr Anwar al Kharusi, Chief Commercial Officer, stated that OQEP’s five-year strategy (2026–2030) is built on key pillars: growing cash flow, increasing production and reserves, sustaining that growth through 2030 and beyond, and gradually diversifying internationally.

There are two core growth pillars, he explained. First, to maximise domestic opportunities in Oman by developing resources, strengthening the company’s portfolio and advancing integrated oil, gas and LNG projects such as the Marsa LNG bunkering project currently under development at SOHAR Port and Freezone. Second, to build resilience and expand internationally by leveraging government support and IOC partnerships to grow in relevant geographies across the Middle East and North Africa, transferring the expertise developed in Oman to international markets.

Commenting on the company’s strategy for growth, Hamoud al Hashmi, CEO, said it will be driven by a combination of organic growth, including exploration success in Blocks 48 and 60, as well as M&A, both international and local. Any stake acquisitions will be governed by clear screening criteria covering strategic fit, financial metrics and other key considerations. The process includes internal assurance reviews as well as third-party reviews before asset selection, he stated.

“Our ambition is to reach 300,000 barrels of oil equivalent per day by 2030. The pace will depend on the availability of suitable acquisitions, alongside organic growth. If we can accelerate growth earlier, that would be positive, but we must also ensure we meet our financial criteria. We aim to grow gradually while maintaining discipline across all key financial parameters”, he added.

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