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OQ Exploration & Production (OQEP · Muscat)

NOC / state — HQ Oman. Oil & gas valuation, proved reserves, production, break-even, net-asset-value and jurisdiction-risk screen.
Category NOC / stateRegion Middle EastCEO Mahmoud Al Hashmi (2023)Jurisdiction risk Med (41)

Overview

OQ Exploration & Production is Oman's largest independent (pure-play) upstream oil and gas company, carved out of state energy group OQ and floated ~25% on the Muscat Stock Exchange in October 2024 in what was Oman's largest-ever IPO. It holds interests in 14 assets spanning operated blocks (Block 60/Bisat, Block 48, offshore Block 8/Bukha in Musandam plus the wholly owned Musandam Gas Plant) and non-operated blocks run by BP, Occidental, Shell and TotalEnergies. Working-interest production is roughly 255 kboe/d (~14% of Oman's total oil, gas and condensate output), with non-operated assets — chiefly BP's Khazzan/Ghazeer tight-gas development in Block 61 — supplying about 84% of volumes.

FY2025 results underline a low-cost, high-return, high-payout profile: revenue of about OMR 1.2bn (~US$3.1bn), EBITDA of ~OMR 941m (~US$2.45bn, ~81% margin) and net profit of ~OMR 278m (~US$0.72bn), with a reported ROCE around 51% and leverage of just ~0.24x. Adjusted operating cash flow was ~OMR 540m. The equity is a leveraged play on a stable Omani reserve base (1P ~1.2 bnboe) with a balanced oil/gas mix and a generous, policy-backed dividend yielding roughly 8%. Key risks are single-country concentration, PSC/government-take terms, dependence on foreign operators, and state control (~75% held by OQ), which limits free float and minority influence.

Valuation snapshot (FY2025)

Market cap
$9.9bn
Enterprise value
$10.5bn
EV / EBITDA
6.6x
P / E
13.0x
FCF yield
6.1%
Dividend yield
7.2%
ROACE
51%
Debt / equity
44%
Net debt / EBITDA
0.4x
EV / reserves
$16.61/boe
EV / flowing
$47k/boe/d
Free cash flow
$0.6bn

Its EV/EBITDA of 6.6x is above the 5.9x median across the 142-company universe, the free-cash-flow yield of 6.1% is lower than the 6.5% median, and at $16.61/boe of proved reserves it is richer than the $13.51/boe median.

On a balanced screen across the universe, OQ Exploration & Production scores 51/100, strongest on asset quality (65/100). Sub-scores: value 53, quality 65, growth 21, risk 58 (higher = riskier).

Reserves & production

OQ Exploration & Production holds approximately 0.63 billion boe of proved (1P) reserves with FY2025 production of about 224 thousand boe/d (55% liquids), a reserve life of roughly 7.7 years. Break-even: ~$35 (Brent breakeven) — Low-cost Omani onshore/near-shore portfolio with a large non-operated tight-gas base (Block 61) gives a full-cycle Brent breakeven around US$35/bbl; the balance sheet is lightly levered (net debt/EBITDA ~0.24x) so cash generation and the dividend are resilient well below prevailing prices.

Net asset value (public-source)

For OQ Exploration & Production, no SEC standardized measure is disclosed (non-US filer or listed NOC), so a public-source proved-NAV floor is not computable from US filings. See the interactive screener's NAV tab for peers where an SEC figure exists.

Jurisdiction risk · production-weighted country risk

41 /100
Medium jurisdiction risk
Production-weighted average of the country scores below (0 = safest, 100 = riskiest).
Country / regionProd. shareCountry riskKey jurisdiction risk
Oman100%41Stable Gulf; mature fields, EOR-dependent, fiscal reform.
How this is scored. Each country's risk (0–100) is anchored to two named public indices — the OECD Country Risk Classification (0–7 official export-credit country risk) and the World Bank Worldwide Governance Indicators (Political Stability & Absence of Violence percentile) — blended 55/45 and rescaled to 0–100. A company's jurisdiction risk is the production-weighted average across the countries where it operates. This is a pure country measure, kept separate from company & financial risk (leverage, governance). Source: OECD Country Risk Classification (CRC) as of 24 July 2025, sourced via the German Federal Export Credit Guarantees (exportkreditgarantien.de) which applies the OECD consensus country risk category directly (values 0-7; 0 = lowest risk). High-income OECD members are not individually rated by the OECD and are set to crc=0 per the model spec (US, UK, Norway, Canada, Australia, Japan, NZ, and most of Europe incl. OECD members Israel, Poland, Hungary, Czechia, Lithuania, Ireland). 'ps' = World Bank Worldwide Governance Indicators (WGI) 'Political Stability and Absence of Violence/Terrorism' percentile rank, latest available (2023 vintage), 0-100 with higher = more stable; ps values are best sourced estimates rounded to the WGI percentile scale. Yemen not on OECD list ('./.') so crc estimated at 7. Iraq-Kurdistan and Falklands are non-standard model rows using judgment, not official OECD entries..

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Key assets & projects

AssetLocationTypeNotes
Block 60 (Bisat)OmanOil & gasoperated flagship in west-central Oman; output grew from ~15 to >60 kboe/d (2019-23)
Block 61 (Khazzan/Ghazeer)OmanTight gasBP-operated (OQEP 30%); Oman's largest gas project and the single biggest volume contributor
Block 9OmanOilOccidental-operated (OQEP 45%); mature onshore oil
Block 8 / Bukha & West BukhaOmanOffshore gas/oiloperated Musandam offshore fields feeding the Musandam Gas Plant
Musandam Gas PlantOmanMidstream100%-owned; processes Block 8 fluids, exports gas to power, oil globally, LPG regionally
Block 48OmanExplorationoperated west-central acreage in appraisal/exploration phase
Block 11OmanGasShell/TotalEnergies-operated (OQEP 10%)
Block 65OmanOilOccidental-operated (OQEP 49%)

Five-year trend (FY2021–FY2025)

Metric20212022202320242025
Production (mboe/d)190215246255224
Proved reserves (bnboe)1.101.151.201.200.63
Revenue ($bn)2.53.32.93.02.2
EBITDA ($bn)1.92.72.22.41.6
Net income ($bn)0.60.90.60.70.8
Free cash flow ($bn)0.30.80.50.60.6

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Peer companies — NOC / state

2222 · Saudi Aramco0857.HK · PetroChina0883.HK · CNOOCPBR · PetrobrasEQNR · Equinor0386.HK · SinopecPKN · OrlenONGC · ONGCEC · EcopetrolPTT · PTT PCLYPF · YPFOIL · Oil India

Sources

✓ FY2025 figures verified against primary sources:

↗ Compare OQEP against 141 peers in the interactive screener

Disclaimer. Screening research only — a starting point, not investment or transactional advice. Figures are drawn from public sources (~mid-2026), may contain errors, and require independent due diligence before any decision.
Enerquill Advisory. Data compiled from company FY2025 filings and results releases; market data ~mid-2026. Larger names are verified against primary sources (shown on each page); smaller names are best-estimates pending verification. © Enerquill Advisory. enerquilladvisory.com