Muscat – The company’s strong financial results were driven by a combination of higher production rates and effective cost management.

According to the company’s financial statements for January to September 2024, OQEP achieved a free cash flow of RO 236 million (US$ 614 million), surpassing its target of RO 232 million (US$ 603 million) by 2 percent. This increase was attributed to efficient control over operating and capital expenses, along with an increase in the company’s production output.

In terms of operational performance, OQEP saw a 3 percent increase in total daily production, rising to 255,000 barrels of oil equivalent per day (BOEPD) from 253,000 BOEPD during the same period in 2023. The company highlighted that gas production now accounts for 40 percent of its total output, reflecting the ongoing diversification of its energy production. With these results, the company is on track to exceed its production target for the year.

The report also detailed the company’s ongoing expansion efforts, including significant progress in Concession Area 60, where new oil discoveries were made in the second quarter of 2024. Development work for these discoveries is scheduled to begin in early 2025, with full-scale production expected to commence by the third quarter of 2025.

Eng. Ahmed bin Saeed Al Izkawi, CEO of OQ Exploration and Production, expressed pride in the company’s performance, stating that the strong results reflect its commitment to maximising shareholder value and ensuring operational efficiency. He added that the company is focused on achieving its production targets for the fourth quarter of 2024 while carefully monitoring market conditions and commodity prices.

Looking ahead, Al Izkawi emphasised that OQEP will continue to maintain a balanced oil and gas portfolio, with plans to increase gas production in the near future. The company expects growing market demand for natural gas, which will further bolster its financial performance. Additionally, OQEP is focused on converting new opportunities into projects, ensuring sustainable growth in line with its long-term strategy.