Oman M&A | Oman’s OQ Group in US$1.4 billion divestment

September 19, 2023

On 22 August 2023, Oman’s OQ Group reached an agreement to sell 40% non-operating stakes in Block 60 (its flagship producing asset) and the adjacent Block 48 exploration area for Omani Rial 548 million (US$1.4 billion), the company unveiled in its recently released H1 2023 financial statements. This deal is the latest in a series of divestments by OQ to privatize state-owned assets.

The buyer(s) has not been made public. Privately-owned Omani-based player, Petrogas, is a rumoured buyer, whilst other companies active in Oman include Shell, BP, PTTEP, Occidental, TotalEnergies, PETRONAS, CNPC, Indian Oil Corporation, Mubadala Energy, Mitsui, Tethys Oil, ARA Petroleum, Hydrocarbon Finder, and Masirah Oil. The deal may also bring a new entrant to Oman, as opportunities like this are difficult to find in the Middle East.