OQ Exploration and Production (OQEP) has a unique role in Oman’s upstream as the vehicle for the government’s right to acquire up to 30% in any commercial oil and gas discoveries. As such, its growth in recent years has been fueled by acquisitions of minority stakes in some of the largest producing assets in Oman – the exception is the giant Block 6 which is operated by state-led Petroleum Development Oman (PDO).
OQEP’s net output had risen in recent years. But having hit a record 246,000 boe/d for 2023 (see chart), it slipped back to 225,000 boe/d for 2024 as OQEP farmed out 40% from Block 60, the only major producing block it. Indonesia’s MedcoEnergi paid $1.4bn for the 60,000 b/d asset effective 12 December 2023 (MEES, 8 December 2023). (CONTINUED - 1166 WORDS)
