Muscat – Oman’s upstream energy company OQ Exploration and Production (OQEP) has established a $2bn sukuk programme to expand its financing options and strengthen its readiness to access international debt capital markets.

OQEP said in a disclosure to the Muscat Stock Exchange on Wednesday that the programme provides a framework for potential future sukuk issuances as part of its broader funding strategy. It clarified that setting up the programme does not constitute an immediate financing drawdown.

Sukuk issued under the programme may be listed on the London Stock Exchange’s International Securities Market, subject to OQEP’s funding requirements, prevailing market conditions and the necessary approvals, the company said.

OQEP, a subsidiary of Oman’s global integrated energy group OQ, said the sukuk programme would enhance its financing flexibility without, in itself, changing its approved capital expenditure or business plan.

Meanwhile, S&P Global Ratings has assigned preliminary ‘BBB-‘ and ‘gcAA-‘ programme ratings to the proposed $2bn sukuk programme to be issued through OQEP Sukuk Ltd.

According to S&P, the special-purpose issuer will enter into several contractual arrangements with OQEP, including purchase, lease and service agency agreements, as well as sale and substitution undertakings, a murabaha agreement and a purchase undertaking.

S&P said it understood that the proceeds would be used for refinancing, capital expenditure and general corporate purposes.

Under the proposed structure, at least 55% of the sukuk proceeds will be used to purchase assets from OQEP under a purchase agreement, while no more than 45% will be allocated to acquiring a portfolio of commodities, referred to as murabaha assets, the rating agency said.

Earlier this month, another OQ subsidiary, OQ Gas Networks (OQGN), established a $1bn sukuk issuance programme to provide flexible access to international debt capital markets.

Like OQEP, OQGN had clarified that no sukuk had been issued and no financing had been raised under the programme at this stage. Any future issuance may be listed on the London Stock Exchange’s International Securities Market, subject to OQGN’s funding requirements, prevailing market conditions and the necessary approvals.

OQEP net profit rises 25% to RO296mn in 9 months

OQ Exploration and Production (OQEP) reported a 25.1% increase in net profit to RO296.3mn for the first nine months of 2026, supported by higher realised oil prices, improved production performance and disciplined cost management.

The company’s preliminary unaudited financial results for the nine months ended September 30, 2026, showed revenue rising 10.5% to RO700.4mn from RO633.8mn in the corresponding period of 2025.

OQEP maintained tight control over operating costs despite increased production activity. Cost of sales and other expenses declined marginally by 1% to RO434.4mn from RO438.7mn a year earlier, helping improve overall cost efficiency.

The company said its operating expenditure per barrel of oil equivalent remained below $9, reflecting continued cost discipline alongside higher production activity.

However, OQEP’s other income fell 27.7% to RO30.3mn from RO41.8mn in the year-earlier period.