By: Oil & gas middle east

OQ Exploration and Production (OQEP) has announced the signing of a natural gas sales agreement (NGSA) with Integrated Gas Company (IGC) for Block 65, alongside a natural gas transportation agreement for the Marsa LNG project.

According to the news report by Times of Oman, the agreements mark a significant step in enhancing the efficiency of Oman’s gas value chain and promoting greater integration across the national energy system.

Under the NGSA, OQEP and Occidental Oman Block 65 LLC 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 the agreement.

The agreements were 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. Fares Al Khazin, CEO of Marsa LNG, also signed on behalf of the Marsa Consortium.

The first agreement covers natural gas transportation for the Marsa LNG project, a joint venture between TotalEnergies and OQEP’s subsidiary Muzn LNG. Under the deal, Marsa LNG will transport up to 150 million standard cubic feet per day of gas from Block 10 through OQ Gas Networks’ infrastructure to its facility currently under construction at the Port of Sohar.

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

The second agreement pertains to Block 65, with OQEP and Occidental supplying their shares of gas to IGC. The partnership aims to strengthen the stability of gas supplies while supporting Oman’s industrial and energy sectors.

Together, the two agreements form a cornerstone 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 its commitment to transforming Oman’s gas resources into a driver of economic development and a sustainable source of clean energy for the region.

According to Times of Oman’s report, Mahmoud Al Hashmi, Acting CEO of OQEP, said: “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 shareholders while contributing to national economic growth and income diversification,” he added.

Al Hashmi also highlighted that OQEP is advancing innovative projects to support the clean energy transition and build an integrated energy ecosystem based on efficiency, technology, and sustainability, reinforcing Oman’s role as a leading regional hub for renewable energy and low-carbon gas.