OQEP signs two strategic natural gas sales agreements

04/11/2025 03:47 AST

OQ Exploration and Production (OQEP) has announced the signing of a natural gas sales agreement (NGSA) with Integrated Gas Company (IGC) for Block 65. OQEP will also transport natural gas at Marsa LNG project, as part of this development. The agreement marks a key step in the company's efforts to enhance the efficiency of the gas value chain and promote greater integration across Oman's national energy system.

Under the agreement, OQEP and Occidental will supply their respective shares of natural gas produced from Block 65 to IGC. OQEP holds a 49% stake in the field, which will be sold under the terms of this agreement.

The agreement was signed by Eng. Mahmoud bin Abdullah Al Hashmi, Acting Chief Executive Officer of OQEP, and Abdulrahman bin Humaid Al Yahyai, Chief Executive Officer of IGC.

OQEP affirmed that the two agreements represent another milestone in the company's ongoing journey to support energy transition in the Sultanate of Oman through projects that embody its commitment to sustainability, innovation, and environmental responsibility, in line with Oman Vision 2040 and the nation's roadmap to achieve net-zero carbon emissions by 2050.

The first agreement covers the Natural Gas transportation Agreement for the Marsa LNG project, signed between IGC and Marsa LNG LLC, a joint venture between TotalEnergies, and OQEP's subsidiary Muzn LNG.

Under the agreement, Marsa LNG will transport up to 150 million standard cubic feet per day of natural gas from (Block 10) through OQ Gas Networks' infrastructure to its facility currently under construction at the Port of Sohar.

OQEP pointed out that the project is among the region's pioneering initiatives for producing low emission liquefied natural gas (LNG), with an expected annual production capacity of around one million metric tons. It is set to become a regional hub for LNG bunkering, supplying clean marine fuel, thereby reinforcing Oman's position as a global center for clean energy trade and sustainable maritime transport.

The second agreement pertains to Block 65 and involves the signing of a Natural Gas Sales Agreement (NGSA) between IGC and both OQEP, and Occidental Oman Block 65 LLC (OXY). Under the agreement, the partners will supply their shares of natural gas produced from the block, a move aimed at strengthening the stability of gas supplies and supporting Oman's industrial and energy sectors.

The agreement was signed on behalf of the Marsa Consortium by Fares Al Khazin, Chief Executive Officer of Marsa, and Abdulrahman bin Humaid Al Yahyai, Chief Executive Officer of IGC.

The two agreements form a key pillar of OQEP's strategy to develop low-emission gas projects and achieve full integration across exploration, production, transportation, processing, and marketing activities. The company emphasised that it is working to transform Oman's gas resources into a main driver of economic development and a sustainable source of clean energy for the region.

Mahmoud Al Hashmi, Acting Chief Executive Officer of OQEP, stated: "The partnership with global companies such as TotalEnergies and Occidental reflects international confidence in Oman's investment climate and strengthens OQ Exploration & Production's position as a key regional player in modern energy markets."

"These projects embody OQ's commitment to delivering sustainable economic value to its shareholders while contributing to the growth of the national economy and the diversification of income sources," he added.

Al Hashmi also stressed that OQEP is moving forward with the development of innovative projects that support the transition to clean energy and contribute to building an integrated energy ecosystem based on efficiency, technology, and sustainability. This approach, he noted, reinforces Oman's position as a leading regional hub for renewable energy and low-carbon gas.

Times of Oman