Overview of IPO

OQ Exploration and Production SAOG (under transformation) (“OQEP”) is Oman’s only wholly-state-owned upstream oil and gas operator and its largest pure-play oil and gas exploration and production company, ranking among the top three oil and gas producers in the country. OQEP is a wholly owned subsidiary of OQ, the Sultanate of Oman’s flagship energy company, and one of its core assets.

The Selling Shareholders expect to sell up to 25% of the total issued share capital of OQEP, with the Company and the Selling Shareholders retaining the right to amend the size of the Offering at any time before the end of the subscription period at their sole discretion, subject to applicable laws and the approval of the FSA. Immediately following the Offering, a minimum of 75% shareholding will continue to be held by OQ.

Through the share offering (“Offering”), OQEP IPO is providing an opportunity for Omani and international investors to participate in Oman’s capital markets and share in the wealth of our attractive and balanced asset portfolio. The offering will boost Oman’s economic growth, as well as provide further opportunities for development and innovation in the energy sector within the Sultanate of Oman.

This webpage contains information about OQEP, the planned listing on the MSX and how you can subscribe to the offering.

OQEP At A Glance

  1. Reserves as of December 2023 based on company data.
  2. On working interest (“WI”) basis, WI basis defined as the proportion of production and/or reserves per OQEP’s ownership stake in assets prior to the deduction of the government royalties or share of production.
  3. Adjusted EBITDA. EBITDA calculated as Profit for the year before tax adjusted for income tax, finance income, finance costs and depreciation, depletion and amortization (“DD&A”). Adjusted EBITDA (including Abraj) is EBITDA adjusted for reversal of impairment on oil and gas assets and other property plant and equipment and to remove the gain on divestment of Block 60 and Block 48 for the year ended 31 December 2023. Adjusted EBITDA is Adjusted EBITDA (including Abraj) further adjusted for the contribution of Abraj.
  4. Adjusted FCF defined as Net cashflow from operating activities minus capital expenditure. OQEP FCF is adjusted to remove FCF attributable to Abraj.
  5. 2023 In Country Value (ICV) retained of $142m (40% of total procurement spend). 2023 SMEs spend of $76m (38% to SMEs RIYADA)

Investment Highlights

Crucial pure-play upstream company in Oman’s upstream landscape

Top-tier asset portfolio

Only wholly-state-owned upstream operator and partner of choice for international oil & gas companies

Proven track record of delivering value and growth

Robust cashflows and capital structure driving shareholder returns

Seasoned Leadership Team with Significant Industry Experience and l Track Record of Project Delivery and Growth

IPO Timeline

The expected timetable for completion of the subscription procedures:

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    9 September 2024

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    Intention to float

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    Price Range Announcement

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    22 September 2024

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    30 September 2024

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    Offering Commencement

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    Close of Subscription for Category II Investors (Retail)

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    9 October 2024

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    10 October 2024

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    Close of Subscription for Category I Investors (Institutional Investors)

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    Announcement of the Final Offer Price

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    17 October 2024

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    17 October 2024

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    Allocation of Shares

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    Commencement of Refunds to Category II Investors

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    20-22 October 2024

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    28 October 2024

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    Expected listing date on the MSX

Key Documents

Shariaa Compliance Certificate
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OQEP IPO Prospectus
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OQEP IPO Booklet - Category II (Individual Investors)
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Offer Notice
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Announcements

ITF Press Release
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Price Range Announcement Press Release
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Subscription

Make an informed decision:

Make sure you have an account at the MCDC:

Subscribe to the Offering:

Allocation of shares:

Collecting agents:

Details of the collection agents and the subscription process will be announced upon publication of the prospectus summary.

FAQs

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.
  • 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.

Issue Managers

Sohar International Bank SAOG

P.O. Box 44, Postal Code 114,
Ruwi, Muscat, Sultanate of Oman

Media Enquiries

OHI Leo Burnett

Meera Al Husani
meera@ohileoburnett.com

 

Kekst CNC

Christopher Deifuss
christopher.deifuss@kekstcnc.com