What is OQEP, and what does the company do?
OQEP is Oman’s largest pure-play upstream company, as well as the only wholly-state-owned, upstream oil and gas operator, and is a key part of global energy company, OQ.
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The company focuses on the exploration and production of oil and gas in the Sultanate of Oman.
- OQEP has a strong track record of successful exploration of oil and gas fields in Oman. The discovery of new oil and gas production sites serves as the basis for its strong operating performance.
- As of 2023, OQEP production mix is: around 46% oil, 43% gas and 11% condensate. OQEP’s production accounts for a 14% share of Oman’s oil and gas production.
- Founded in 2009, the company’s 655 employees (as of June 30, 2024) and entrepreneurial approach are the driving force behind OQEP’s success.
What geographies does OQEP operate in?
OQEP’s assets are located in Oman. Oman is one of the world’s most prolific hydrocarbon basins with an established representation base of international energy companies, a well-established oil and gas infrastructure with a stable and strategic location within the Arabian Peninsula – providing OQEP’s partners with strong and secure export links. OQEP’s assets are proximal to multiple export hubs within Oman, including Muscat, Sur, and Salalah.
What are OQEP’s competitive strengths?
OQEP holds a differentiated and highly strategic position in the Sultanate of Oman as the largest pure-play upstream company in the country and the only wholly-Government-owned operator. It is the beneficiary of Oman’s attributes as an attractive investment destination, underpinned by stability, economic growth and long-term commitment to the oil and gas sector. The Company has a top-tier portfolio of operated and non-operated assets, including some of the most strategically important fields in Oman, such as Block 61, which accounted for 33 per cent. of Oman’s total gas production in 2023, and Block 9, which accounted for 10 per cent. of Oman’s total oil production in 2023.
Who sits on the OQEP management team?
OQEP boasts a leadership team with significant experience and skillsets, having worked within the industry for an average of 25 years within various OQ entities as well as IOCs, such as Shell, MOL Group and Halliburton. The Company is led by the CEO, Mr. Ahmed Al Azkawi, the CFO, Mr. Jaber Al Noumani, the Chief Executive – Commercial, Mr. Anwar Al Kharusi, the Vice President of Joint Ventures, Mr. Mohammed Al Habsi, and the Chief Operating Officer, Mr. Mahmoud Al Hashmi. They are complemented by other senior management team members who have been involved in the evolution of the company as the Sultanate of Oman’s strategic energy asset.
Who are the existing OQEP shareholders? Who owns OQEP?
Founded in 2009, OQEP is a wholly-owned subsidiary of OQ prior to the completion of the IPO. OQ is Oman’s flagship energy company, which is in turn 100% owned by the Oman Investment Authority, the Sultanate of Oman’s investment arm.
Where is OQEP planning to list, and why on that particular exchange?
OQEP has announced its Intention to Float on the Muscat Stock Exchange. The shares of the Company will be listed on the MSX in accordance with the laws and procedures that are in force on the date application is made for the listing and registration.
How has OQEP been performing financially?
OQEP has demonstrated strong resilience through oil cycles, with approximately 14 per cent revenue compound annual growth rate since 2010 and a 19 per cent. Adjusted EBITDA
(including Abraj) compound annual growth rate over the same period. The Company is focused on maintaining a low-cost operating asset base that, combined with the underlying quality of its asset base, allowed it to record adjusted operating costs of US$9.4/boe in 2023.
OQEP’s high-quality asset base, experienced management team, and commitment to operational excellence have supported an impressive operational performance. This operational success has enabled OQEP to deliver a highly resilient financial performance.
For more information refer to the offer document.
What is OQEP’s growth strategy?
OQEP’s growth strategy aims to reinforce OQEP’s competitive position and lead in gas and decarbonization and has three key pillars:
- Continuing to invest in hydrocarbon exploration and production to maintain and further enhance the Company’s commitment to the Oman upstream landscape and maintain its competitiveness and differentiation.
- Further investing in and expanding its gas business to meet the growing demand for low-cost, lower carbon intensity energy and promote the global energy transition.
- Growing production across crude oil and gas through several avenues, including exploration, organic growth, asset optimization, inorganic growth, and by leveraging the Omani Government’s participation rights.
What is the company’s policy on HSE and ESG?
OQEP has put in place a robust HSSE strategy that has seven key focus areas (occupational health, work safety, road safety, environment and sustainability, contractor management, emergency response and security). The HSSE strategy is translated into action through an annual HSSE business plan, with focus areas broken down into clear action plans and key performance indicators defined to measure the performance of each action plan, along with measurable targets and responsible owners under a defined timeline.
OQEP’s ESG approach is centred on ambitious decarbonisation goals, robust health & safety controls, and a deep commitment to supporting the development of its local communities. The Company is committed to achieving net zero in its operations by 2050 as part of the OQ Group Decarbonisation plan. OQEP will report on its ESG performance on an annual basis from 2025.
What is OQEP’s dividend policy?
OQEP intends to maintain a robust dividend policy designed to return substantially all its distributable free cash flow to shareholders after providing for growth opportunities and investments. The company expects to pay the first dividend distribution of US$150 million in or around December 2024 in respect of Q3 2024 and US$150 million in or around March 2025 in respect of Q4 2024 (equivalent to an annualized dividend payment of approximately US$600 million). For the financial year 2025 and 2026, the company expects to pay an annual base dividend of US$600 million and a performance-linked dividend equal to 90 per cent. of its expected free cash flow, plus the net proceeds from any potential asset disposals, net of the base dividend. OQEP’s dividend policy is designed to reflect the company’s expectation of strong cash flow and expected long-term earnings potential while allowing the company to retain sufficient capital to fund ongoing operating requirements and continued investment for long-term growth. OQEP’s ability to pay dividends is dependent on several factors, including the availability of distributable reserves, its capital expenditure plans and other cash requirements in future periods. Any level or payment of dividends will be at the discretion of the Board and will be subject to the approval of the OGM.
For more detailed information on OQEP’s dividend policy, please refer to the offering documents.
How does the subscription process work?
Please visit the ‘How to Subscribe’ section on the OQEP IPO website for more information on how to apply for shares.
What documents do I need to apply for shares?
Please contact your broker or the MCDC to confirm that your records with them are up to date and no further information is required by them to permit you to subscribe to the Offering. For the purpose of applying for the shares in the Offering, you will be required to complete an application form which is available from the Collection Agents, your broker or MCDC.
Which collection agents can subscriptions go through?
Details of the collection agents and the subscription process will be made available upon publication of the offer notice.
What percentage of OQEP’s share capital is being offered?
The Offering represents up to 25 percent of the total issued share capital of the Company.
How does the refund process work?
The Offer Price will be determined by the outcome of the bookbuild offering to Category I Applicants. Any refunds due to each Category II Applicant will be calculated based on the difference between (i) Category II Application Money paid by such Category II Applicant and (ii) the product of the number of shares allotted to such Category II Applicant and Offer Price. The details of the Applicant’s bank account listed in the records of the MCDC will be used for transferring any refund. However, if an Applicant takes a leverage facility for the IPO from a Collection Agent, the refund will be made into the Applicant’s loan account with the respective Collection Agent.
For more information on the refund process please visit the Muscat Clearing and Depository (MCD) website.
Can bank customers use their mobile banking apps to digitally subscribe to the IPO?
Most banks offer customers the option to apply through their mobile banking app. Please check with your bank to check if this is active on your mobile app.
