Muscat: OQEP entered into an asset sale and purchase agreement with Mitsui E&P Middle East B.V. to secure a 35 percent participation interest in the Exploration and Production Sharing Agreement (EPSA) for Block 27. The acquisition marks a strategic step in expanding the company’s portfolio of producing assets within the Sultanate.

The transaction, valued at approximately RO 28.8 million, carries an effective economic date of January 1, 2025. Completion of the deal remains subject to customary conditions, including approvals from the Government of Oman, represented by the Ministry of Energy and Minerals, and the issuance of a Royal Decree to formalise the transfer of participation rights.

Block 27 is a producing asset operated by Occidental Petroleum, which holds a 65 percent stake. The EPSA for the block extends until 2035, providing long-term operational visibility and strategic value for OQEP as it strengthens its foothold in the upstream segment.

The acquisition is expected to contribute approximately 3,500 barrels of oil equivalent per day to OQEP’s share by 2026, supporting production growth and enhancing operational performance.

Financially, OQEP continues to demonstrate strong performance. The company reported revenues of RO 1.2 billion in 2025, with earnings before interest, taxes, depreciation and amortisation (EBITDA) reaching RO 941 million, reflecting a robust margin of 81 percent. Adjusted cash flows from operations grew by 7.5 percent to RO 540.5 million, while return on operating capital stood at an impressive 51 percent.