OQ Exploration and Production (OQEP) has signed an agreement with Mitsui E&P Middle East (MEPME) to acquire a 35% non-operated participating interest in Block 27 to grow its upstream portfolio, OQEP announced on Wednesday.
OQEP will pay a headline consideration of USD 74.9 million for the asset and take ownership of its share with an effective economic date of January 1, 2025. The deal is subject to customary closing conditions and approval from Oman’s Ministry of Energy and Minerals.
Block 27 is a mature oil and gas block that has yielded numerous small discoveries that have been brought on stream since 2006. It is operated by Oxy with a 65% stake under an EPSA that runs until 2035. Production efforts are currently concentrated in the block’s Khamilah field.
“This accretive transaction reflects OQEP’s continued commitment to strengthening its domestic portfolio and enhancing value through strategic acquisitions, while reinforcing its role as a key player in Oman’s upstream oil and gas sector,” said OQEP.
OQEP expects the Block 27 deal to yield 3,500 bopd in production net to its participating interest in 2026.
MEPME entered Oman in 2002 with the acquisition of interests in Blocks 3 and 4, Block 9 and Block 27. Its divestment of Block 27 is part of a portfolio reconfiguration that included the sale of its interests in Blocks 3 and 4 and Block 9 to Kistos at the end of 2025.
Muscat-listed OQEP is Oman’s largest pure-play oil and gas exploration and production company, with a portfolio of operated and non-operated assets across the country.