Muscat
OQ Exploration and Production achieved earnings before interest, taxes, depreciation, and amortization (EBITDA) of OMR 614 million in 2024. The company maintained a return on capital employed of 24%, reinforcing its strong position in the energy sector in the Sultanate of Oman.
The company reported robust revenues of OMR 841.2 million for 2024, with free cash flows amounting to OMR 251 million, further solidifying its leadership in the exploration and production sector with a strategic portfolio comprising 14 concession areas.
Eng. Ahmed bin Said Al Azki, CEO of OQ Exploration and Production, stated that the company achieved strong financial results in 2024, benefiting from its position and ability to operate high-quality assets at lower costs, which contributed to exceptional returns at the sector level. He added that the company announced its plans to distribute returns on capital in the form of dividends, targeting a core dividend distribution of OMR 230.7 million for 2025 and 2026, subject to the company’s performance and board approval. The proposed returns on capital can also be enhanced through performance-based dividends.
On the operational front, he noted that OQ Exploration and Production has strengthened its resource base through six major producing assets. Concession Area 60 is one of the company’s key assets, representing nearly 16% of the company’s total production in 2024. Other significant assets include Concession Area 61, one of the non-associated gas and condensate regions, which contributed approximately 40% of the company’s production in 2024.
He mentioned that the field development plan is being updated to assess the full potential gas resources of the concession area for future growth projects. A joint venture worth USD 1.6 billion with Total Energies has been approved for the Muscat project to supply ships with liquefied natural gas, which is currently under construction in Sohar. Additionally, the successful operations of Concession Area 60 at the Gharif field are expected to lead to early commercial production in 2025.
The Musandam gas station has managed to produce higher quantities of gas. As part of its transformation into a public joint-stock company, one of the company’s notable achievements during the year was the initial public offering (IPO) in October 2024, which raised OMR 770 million, making OQ Exploration and Production the largest entity listed on the Muscat Stock Exchange.
This achievement has enhanced the company’s position, set new standards for transparency and governance, and increased investment attractiveness in Omani financial markets. OQ Exploration and Production has provided a strong dividend distribution policy that ensures stability for investors and offers balanced returns between core and performance-linked distributions.
In 2024, the company distributed OMR 173 million as dividends, with an additional proposed distribution of OMR 57.7 million.
