Oman’s OQEP to raise $2bn from global markets

Oman’s state-run OQ Exploration & Production (OQEP) plans to raise billions of dollars from global debt capital markets to diversify its funding base.

The oil and gas company is launching a sukuk (Islamic bond) programme to generate $2 billion, according to a filing with the Muscat Stock Exchange (MSX).

The programme will proceed depending on OQEP’s funding requirements, market conditions and regulatory approvals. However, it does not represent a financing drawdown at this stage.

The sukuk is likely to be listed on the London Stock Exchange’s International Securities Market.

The programme will not change the approved capital expenditure or business plan, the filing said.

It is likely that some of the OQEP funding will be used to repair the country following drone strikes – damage across the GCC from Iranian attacks is expected to run into tens of billions of dollars, according to an AGBI review of analysts’ projections in May.

In Oman, drone strikes forced temporary shutdowns at the ports of Salalah and Sohar, disrupting cargo flows. Both facilities have since resumed operations or are restarting in phases.

The International Energy Agency estimated that 84 energy facilities across Iran’s Gulf neighbours were damaged in the first wave of attacks in March and April, including 34 that suffered “serious or very serious” damage.

Further reading:

• OQ to list oil production arm in largest Omani IPO
• Omani state oil company’s results buoyed by higher oil prices
• Muscat Stock Exchange targets three IPOs in 2026

In August OQEP said revenue rose 12 percent year on year to OMR686 million ($1.8 billion) in the first six months of the year, while net profit increased 19 percent annually.

The company listed on the MSX on October 28, 2024. Its shares closed at OMR0.501 on Tuesday, up 39 percent so far this year.

OQ Group, a subsidiary of the Oman Investment Authority, owns 75 percent of OQEP.