OQEP’s
Net Profit Exceeds RO 199 Million

Muscat,
16 Aug 2026 (ONA) — OQ Exploration and Production (OQEP) achieved a 19.4
percent growth in its net profit during the first half of 2026, reaching RO
199,029,000. This surpassed the revenue growth rate of 12 percent, reflecting
the company’s efficiency in controlling costs despite the increase in
production levels.

This
revenue growth is attributed to the increased sales volume of crude oil and
condensates, which reached 11.6 million barrels, in addition to an 8 percent
increase in the average realized oil price, reaching USD 80.9 per barrel.

The
company also achieved a 14.1 percent year-on-year increase in adjusted cash
flow from operating activities, reaching RO 331.2 million in the first half of
2026, driven by higher commodity prices and increased sales volume.

The
audited financial results indicated that the company invested RO 132 million as
capital expenditure since the beginning of the current year. This includes RO
128 million in oil and gas assets investments, and RO 3.5 million in
exploration expenditures, reinforcing the company’s growth strategy and the
execution of further future works.

The
return on capital employed rose to 67.0 percent, compared to 51.5 percent in
the first half of 2025, representing an increase of 30 percent. This confirms
the profit growth and the efficiency of capital allocation adopted by the
company.

For
the first time, the company obtained an investment-grade credit rating of
(BBB-) with a stable outlook from the rating agencies Standard & Poor’s and
Fitch.

Mahmoud
Abdullah Al Hashimi, Chief Executive Officer of OQ Exploration and Production,
stated that the company’s operational and financial results during the first
half of the current year achieved a remarkable increase across the company’s
various business sectors. This was supported by the continued implementation of
the growth strategy and the safe and deliberate execution of its operations,
alongside the improvement in commodity prices, increased production, and higher
oil prices. This enabled the company to achieve higher profits and cash flows,
enhance its financial position, and increase its ability to deliver long-term
sustainable value to shareholders.

He
pointed out that the company committed to strong performance in the areas of
Health, Safety, Security, and Environment (HSSE) at a stable and consistent
level, while continuing to execute safe and well-planned operations, committing
to improving emission intensity, and completing the HSSE action plan ahead of
schedule.

He
added that total production rose to 228.2 thousand barrels of oil equivalent
per day during the first half of 2026, comprising 53 percent oil and 47 percent
gas. This represents an increase of 2.7 percent compared to the same period in
2025, resulting from its commitment to achieving operational performance across
the company’s asset portfolio.

He
noted that the company maintained discipline in cost control, keeping the
operating cost per barrel below USD 10 per barrel of oil equivalent.

He
affirmed that the comprehensive periodic maintenance work for the gas
processing plant in Block 60 was completed within 8 days, which is seven days
ahead of schedule, recording more than 45,000 safe working hours without any
injuries or incidents.

He
explained that the exploration achievements in Blocks 60 and 48 contributed to
supporting near-term production growth. Furthermore, the company made
significant progress in exploration operations across Blocks 11, 18, 47, and 54
during the first half of 2026.

Regarding
the Marsa LNG project, he confirmed that the project made remarkable progress
during this period, exceeding 55 percent completion in construction works,
which supports the company’s long-term strategy for integrated growth in the
gas sector.

The
CEO of OQ Exploration and Production stated that the Exploration and Production
Sharing Agreement (EPSA) for Block 9 was also amended, adding revised financial
terms in favor of the company, which allows for investment opportunities and
higher production.

The
company’s investment portfolio grew through the acquisition of a 35 percent
stake in Block 27 and the signing of agreements for offshore Block 80 in
partnership with the Turkish Petroleum Company, in addition to entering
offshore Block 18 in partnership with Petronas.

The
company continues to enhance global growth by studying and evaluating
investment opportunities based on Memoranda of Understanding with national and
international oil companies, which supports its ambitions for long-term
sustainable growth and enhances value creation for shareholders.

It
is noteworthy that the company’s Board of Directors proposed dividend
distributions, subject to shareholder approval, to include base dividends for
the second quarter of 2026 amounting to RO 57.7 million, scheduled to be paid
in September 2026.

—Ends/AG