Muscat – OQ Exploration and Production Company (OQEP) has signed an asset sale and purchase agreement to acquire a 35% non-operated participating interest in Block 27 from Mitsui E&P Middle East, as part of its strategy to expand its domestic upstream portfolio.

In a disclosure to the Muscat Stock Exchange on Wednesday, OQEP said the transaction has a headline consideration of RO28.8mn, with an economic effective date of January 1, 2025.

‘The asset sale and purchase agreement sets out the agreed terms for the transfer of a 35% non-operated participating interest in Block 27 from Mitsui E&P Middle East to OQEP,’ the company said.

The deal remains subject to customary conditions, including approval from the government, represented by the Ministry of Energy and Minerals, as well as the issuance of the required Royal Decree.

Following the announcement, OQEP’s shares rose 2.31% on Wednesday on the Muscat Stock Exchange.

Block 27 is a producing asset in Oman operated by Occidental Petroleum, which holds a 65% participating interest under the block’s Exploration and Production Sharing Agreement (EPSA), valid until 2035.

OQEP expects this acquisition of interest in Block 27 to add around 3,500 barrels of oil equivalent per day to its net production in 2026.

The company described the transaction as accretive, highlighting its commitment to strengthening its local asset base through strategic acquisitions. The move aligns with OQEP’s broader strategy to enhance value and reinforce its position in Oman’s upstream oil and gas sector.

The company, in is disclosure, added that it remains committed to delivering sustainable value to both the sultanate’s economy and its shareholders through efficient resource development and responsible energy production.

OQEP is Oman’s largest pure-play oil and gas exploration and production company and it is the only upstream oil and gas operator owned by the Government of Oman. It currently ranks among the top three oil and gas producers and is also one of the largest holders of oil and gas reserves in Oman.