Oman's OQ Exploration and Production (OQEP) delivered strong results for the first half of this year, with higher production and stronger oil prices, driving double-digit growth in revenue, EBITDA and net profit, while it continued to invest in its growth strategy.

Revenue increased by 12% in the first half of 2026 to OMR685 million ($1781.53 million), compared to the same period in 2025. This growth was supported by a 2.7% increase in oil and condensate sales volumes to 11.6 million barrels, together with an 8% increase in the average realised oil price to $80.9/bbl.

Net Profit increased by 19.4% to OMR199.029 million ($517.63 million), outpacing the 12.0% growth in revenue, reflecting the company’s continued focus on cost discipline despite higher production levels, it said.

Adjusted Cash Flow from Operations increased by 14.1% year-on-year to OMR331.2 million in H1 2026 driven by higher commodity prices and increased sales volume.

The company invested OMR132 million in capital expenditures year-to-date, including OMR128 million of additions to oil and gas properties and OMR3.5 million exploration expenditures, to progress OQEP growth agenda.

Balance sheet strengthened with leverage ratio at 0.16x supported by higher profitability and cash balance.

Return on Capital employed increased to 67.0%, compared with 51.5% in H1 2025, a roughly 30% increase demonstrating earnings growth and capital allocation efficiency.

Operational Highlights

HSSE performance remained robust, maintain safe and reliable operation with improved emissions intensity, and delivery of the HSSE business plan ahead of schedule.

Total production (net working interest) increased to 228.2 kboepd in H1 2026 (53% oil, 47% gas), up 2.7% compared to the same period in 2025, driven by strong operational performance across the asset portfolio.

OQEP’s continued focus on reliability and cost discipline kept unit operating costs below $9/boe, it said.

 Growth Strategy

Exploration success in Blocks 60 and 48 supported near-term production growth while advancing exploration activities across Blocks 11, 18, 47 and 54 during H1 2026, it said.

Marsa LNG continued to progress during the period, surpassing 55% construction completion and supporting the Company's long-term integrated gas growth strategy.

Signed the Block 9 EPSA amendment, with enhanced fiscal terms and enabling further investment to enhance production

Portfolio expanded with acquisition a 35% interest in Block 27 and entered into concession agreements for offshore Block 80 with Turkish Petroleum in additional to the entry of offshore Block-18 with Petronas early this year.

Strengthening international growth: The company continued to evaluate opportunities with discipline, supported by MoUs with national and international oil companies that align with our long-term growth ambitions and value creation framework, it said.

Shareholder returns

Subject to shareholders’ approval, the Board of Director have proposed Q2 2026 base dividend of OMR57.7 million to be paid in September 2026 and H1 2026 performance linked dividend (PLD) of OMR38.45 million, payable in two equal instalments of  OMR19.22 million each: the first instalment to be paid in September 2026 and the second instalment to be paid in November 2026. -TradeArabia News Service