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OQ Exploration and Production (OQEP), an Oman-listed exploration and production company, said the $1.6 billion Marsa LNG bunkering project is progressing as planned, with more than 39 percent completed by the end of December 2025.
The company has secured stable, long-term gas agreements for two of its blocks, Block 65 and Block 10, to support the future utilisation of Marsa LNG, according to its 2025 financial statement issued on Monday.
The LNG bunkering facility, developed in partnership with France’s TotalEnergies (80 percent stakeholder), will integrate natural gas production from Block 10 with a fully electric liquefaction plant and a solar power facility, making it one of the lowest GHG emission LNG plants in the world at 3kg CO2/boe.
The project will serve the growing demand for LNG as a marine fuel, reducing shipping GHG emissions whilst strengthening Oman’s position in the global energy sector.
OQEP will also sell LNG directly to international markets through Marsa LNG.
According to the statement, the Bisat C expansion facility at Block 60 marked a strategic enhancement, significantly increasing the company’s total oil processing capacity to 95,000 barrels per day (oil) and its total water processing capacity to over 800,000 barrels per day.
OQEP plans to maintain net debt to EBITDA below 1.5 times, ensuring a robust financial position while funding potential future growth projects.
The company aims to build its cash generation capacity and maintain reserves replenishment at 100 percent.
OQEP reported a 6.7 percent year-on-year (YoY) decline in revenues to OMR 1.2 billion and a 14.9 percent year-on-year decline in net profit to OMR 278 million, compared to 2024.
(Writing by P Deol; Editing by Anoop Menon)
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