Oil & Gas

Oman is planning to award exploration and development rights to four oil and gas blocks by early next year, as part of its continued efforts to attract investment in its energy sector. The selected blocks—36, 43A, and 66, located near the country’s borders, as well as Block 18, an offshore concession in the southern Sea of Oman—fall under the “Project Sun” initiative. Anwar Al Kharusi, chief executive commercial at OQ Exploration & Production (OQEP), confirmed that the government has already received offers from selected potential operators and partners, which are currently being evaluated by Oman’s energy ministry, OQEP, and Canada-based Scotiabank.

In line with its strategic expansion plans, OQEP announced last month that it would begin a share buyback program aimed at financing future investments. The company plans to repurchase between 45 and 60 million shares listed on the Muscat Securities Market, beginning August 6, 2025, and continuing through February 9, 2026, or until the target number is reached. This move reflects the company’s intention to strengthen its financial position amid challenging market conditions and prepare for upcoming development projects in the oil and gas sector.

Despite stable revenues, OQEP experienced an 11 percent year-on-year decline in net profit for the first half of 2025, earning OR167 million. The flat revenue, recorded at OR428 million, highlights the ongoing impact of global oil price fluctuations. Nevertheless, the company saw an 11 percent increase in oil and condensate sales volume during the same period, which helped offset some of the financial strain caused by lower prices.

The broader Omani economy has also been affected by declining oil revenues. The sultanate posted a budget deficit of OR260 million ($673 million) in the first half of 2025, as oil revenues dropped 10 percent to $7.8 billion compared to the same period in 2024. Lower average oil prices and production were the main contributors to this shortfall. Oman, which produces around one million barrels of crude oil per day, is aiming to bolster its economic resilience through strategic exploration projects and efforts to diversify beyond hydrocarbons.