OQEP
Profits Reach RO 941 Million in 2025

Muscat,
2 Mar 2026 (ONA) — OQ Exploration and
Production SAOG (OQEP) today announced its audited financial results for the
financial year to 31 December 2025 and an update to its strategy. The financial
highlights indicate that revenue stood at RO 1.2 billion with an EBITDA of RO
941 million at a 81% margin.

Adjusted
Cashflow from Operations increased 7.5%
to RO 540.5 million, while Return on Capital Employed “ROCE” stood at 51% .

Operational
highlights include achieving a total production rate of 224 kboepd (oil and
condensate 54%; gas 46%).

OQEP
successfully delivered two major projects. The Bisat C Expansion at Block 60,
which increased the total processing capacity to 95,000 bbl/day oil and over
800,000 bbl/day water, and Bisat Power Plant which will supply a reliable power
from the Government network. As a result, operational costs were lowered and
Greenhouse Gas emissions optimized.

Marsa
LNG Bunkering project progress goes as per the plan and on budget with more
than 39% completion achieved.

Future
gas revenues were secured by signing a long-term Gas Sales Agreement “GSA” for
Block 65 with the Integrated Gas Company SAOC “IGC” and signed GSA to supply
Marsa LNG in Sohar with gas from Block 10.

The
Company distributed approximately RO 275 million of dividends in cash. As many
as 27.5 million shares were purchased to date via share buyback program to
further enhance shareholder value.

The
Q4 2025 dividend proposal of 7.23 Baiza per share as cash dividend is to be
approved at the Annual General Meeting.

The
Company intends to continue the dividend framework established in the
2024–2026, as detailed in the IPO prospectus, while remaining adaptive to
market developments and evolving business needs.

Mahmoud
Al Hashmi, Chief Executive Officer, OQEP, commented: “The 2025 results
demonstrate OQEP’s ability to operate effectively in challenging and volatile
market conditions. The Company achieved substantial growth in oil and
condensate sales, effectively offsetting a 12.5% decline in realized oil
prices. OQEP’s efficient production methods and operational excellence
contributed to an industry-leading Return on Capital Employed exceeding 50%.”

“Operationally,
OQEP made significant progress during the year in progressing growth across its
portfolio of high-quality assets. At Block 60, The Bisat C Expansion Facility
marks a strategic enhancement to OQEP’s performance, significantly increasing
the total oil processing capabilities to 95,000 bbl per day (oil) and over
800,000 bbl/day total water processing capacity. Furthermore, Bisat Power Plant
was delivered which connects Bisat to the national grid, enhance the power
supply reliability, reduce operational costs and significantly reduce
emissions. In addition, Marsa LNG Bunkering project is progressing as plan with
more than 39% completed by the end of December 2025.”

“The
Company secured stable, long-term gas agreements for two of its blocks, Block
65 and Block 10, for the future of Marsa LNG utilization. We also secured four
new and amended EPSAs during the year, a significant achievement. The EPSAs
include exploration extensions to Blocks 48 and 47; a new partnership with
Genel Energy for Block 54; and enhanced fiscal terms in Block 53’s EPSA
extension to 2050.”

Al
Hashmi added that, “We continued to establish new partnerships in Oman,
including an agreement with Genel Energy in Block 54. Additional collaborators,
such as the Turkish Petroleum Corporation (TPAO), China National Petroleum
Corporation (CNPC), and Petronas, entered into Memoranda of Understanding (MoUs)
with OQEP. Subsequently, after the reporting period, our MoU with Petronas
advanced to the successful execution of a Concession Agreement for offshore
Block 18.”

He
further noted that, “OQEP generated substantial value for its shareholders in
the financial year 2025. OQEP has
distributed approximately RO 275 million dividends including Performance linked
Dividend during the year. Additionally, as part of the ongoing buyback program,
OQEP acquired 27.5 million of its own shares to further benefit its
shareholders”.

“We have a clear vision to grow OQEP, creating
a global energy champion which will Energize Sustainable Progress: delivering
reliable, lower-carbon energy and resilient value. OQEP’s Growth Strategy will
focus on increasing production ambition to the ~300 kboe/day level by 2030. The
strategy adopts a balanced growth model with domestic growth complemented by
international expansions through M&A”.

Mahmoud
Al Hashmi, Chief Executive Officer, OQEP said that “The growth strategy will be
funded through OQEP’s internal cash flows and additional new debt, which will
be maintained at a prudent level of less than 1.5x Net Debt to EBITDA. OQEP
shareholders will continue to benefit from its growth, with shareholder
distributions anticipated to be at a level equivalent to 25-35% of Cashflow
from Operations.”

“Our
growth plan will build on Oman’s significant potential, utilizing OQEP’s
operational excellence to create a National Upstream Champion that will support
the strategic objectives of Oman Vision 2040, generating value for its
stakeholders through its growth and innovation.”

In
2025, the Company delivered strong operational and financial results. Despite a
decrease in average oil prices by US$10.1 per barrel (12.5%) compared to the
same period in 2024, the Company increased oil and condensate sales by
approximately 1.4 million barrels. This sales growth effectively offset the
revenue impact of lower oil prices.

Net
Profit remained robust, even in the absence of Profit from Discontinued
Operation following the transfer of the Company’s 51% stake in Abraj to OQ SAOC
in the first half of 2024. In addition, the Company secured a new loan facility
in September 2024, with the associated financing costs fully reflected in the
2025 results.

The
balance sheet remains solid and broadly unchanged on a year-over-year basis,
maintaining a strong equity base and stable net leverage. The Company continues
to apply a disciplined approach to capital allocation; balancing shareholder
returns with long-term asset sustainability. This approach was reinforced by
the introduction of Treasury shares to enhance long-term shareholder value.

Strong
cash flow generation enabled the Company to report net cash from operating
activities of RO 523 million, an increase of 5.3% over the previous year
despite lower profit before tax, supporting the confident distribution of RO 275
million in dividends. Delivering a ROCE of 50.6%, top-quartile performance for
the global exploration and production sector.

OQEP
has recently established the new growth strategy, aspiring to reach higher
production rates up to 300 kboepd level by 2030. This represents an increase of
34% relative to its current production of 224kboepd. The growth strategy stems
from OQEP’s continued domestic expansions, complemented by targeted
acquisitions in Oman.

In
terms of funding and shareholder value, OQEP is committed to maintain Net Debt
to EBITDA below 1.5 times, ensuring a robust financial position at all times
while funding the potential new future growth projects. OQEP will continue to
build up its financial cash generation ability and moreover maintain reserves
replenishment at the 100% level. OQEP will continue to deliver a sustainable
shareholders return for 2027 and beyond in line with the previous years with
dividend payout from 2027 – 2029 ranging between 25-35% of cashflow from
operations (CFFO).

—Ends/AG