MEOG: OQ plans IPO of exploration arm

Omani NOC OQ has announced plans to list a minority stake in its wholly-owned upstream subsidiary OQ Exploration & Production on the local stock exchange.

In a company statement provided to local media, OQ said that it would list 25% in OQEP, with sources telling Bloomberg and Reuters OQ expects to raise around $2bn from the sale, giving OQEP an implied valuation of around $8bn.

OQEP, formerly Oman Oil Co. Exploration & Production (OOCEP), focuses on upstream assets operated by OQ. According to OQ, the upstream business “principally comprises OQ Exploration & Production focusing on operated assets [and] OQ JVs where OQ acquired participating interest ranging from 20% to 45% with major oil & gas companies in and outside Oman.”

The company produces an average 249,000 barrels of oil equivalent per day (boepd), around 14 times higher than when it was launched in 2017.

As part of efforts to attract investors, OQ noted that it intends to pay an annual of $600mn from 2024 to 2026, as well as a performance-linked dividend equal to 90% of cash flows after investments.

OQ said that the initial public offering (IPO) would be completed and the shares listed on the Muscat Stock Exchange (MSX) “is expected in October 2024, subject to market conditions and […] on receipt of required approval from the Financial Services Authority (FSA)”.