Up to 25% of OQEP's share capital will be offered on the MSX. (Image source: Adobe Stock)
OQ Exploration and Production (OQEP), the wholly-Government owned upstream oil and gas operator, intends to launch an initial public offering (IPO) of up to 25% of total issued share capital on the Muscat Stock Exchange
The Offering will be offered in two tranches to eligible investors in Oman and qualified institutional and other investors in a number of countries and retail investors in Oman. The subscription period is expected to commence in September 2024, on receipt of required approval from the Financial Services Authority (FSA) of the Sultanate of Oman, with the listing expected to take place in October 2024.
OQEP is Oman’s largest pure-play oil and gas exploration and production company and its only upstream oil and gas operator wholly owned by the Government of Oman. Founded in 2009, it currently ranks among the top three oil and gas producers and is one of the largest holders of oil and gas reserves in Oman. Since inception, it has witnessed significant growth, expanding its average daily production nearly 14 times, and averaging 249,000 boe/d on a working interest basis by 2023, contributing around 14% of Oman’s total oil, condensate and gas production.
Fundamental advantages
An official statement highlights that OQEP benefits from Oman’s fundamental advantages, including:
(i) strategic location in a prolific hydrocarbon province with direct access to global shipping routes and logistics hubs;
(ii) well developed oil and gas sector;
(iii) stable and highly prospective oil and gas operating environment;
(iv) the Government of Oman’s encouragement of investment in gas-intensive industries to support economic diversification and hydrocarbon value optimisation;
(v) established and competitive regulatory and fiscal framework for the hydrocarbon sector.
It also notes the company’s strong cashflows and optimal capital structure.
Ashraf Hamed Al Mamari, group CEO of OQ, said, “Today marks a significant milestone in our journey towards enhancing the value of OQ’s portfolio through strategic divestments. The intention to float OQ Exploration and Production reflects our commitment to unlocking new opportunities for growth, both for the company and for the Sultanate of Oman. OQ Exploration and Production, with its leading position in maximising Oman's natural resources, underscores our focus on sustainable development and local value creation. By empowering local communities and supporting small and medium-sized enterprises, we not only maximise local value but also contribute to the long-term economic stability of Oman.”
OQEP chief executive officer, Ahmed Al-Azkawi, added, “Since our inception in 2009, we have worked tirelessly to pursue growth opportunities and strengthen our market position. OQEP is a reliable partner for 13 reputable international companies owing to our significant growth trajectory, robust portfolio of assets, and record-breaking production of nearly 14 times higher since inception. Our strategic goals, aligned with Oman’s Vision 2040, focus on monetising the country’s hydrocarbon resources while supporting the energy transition. Additionally, stimulating the local economy is central to our sustainability initiatives, which includes developing local talent and supporting our CSI projects to increase our contributions to In-Country Value. We continue to build on our success and invite investors to be part of this unique opportunity and successful journey.”
