OQEP Sets Up $2 Billion Sukuk Programme With Preliminary S&P BBB-

OQ Exploration and Production (OQEP), Oman’s upstream energy company, has set up a $2 billion sukuk programme, Muscat Daily reported on October 14, 2026. S&P Global Ratings assigned the programme preliminary ‘BBB-‘ and ‘gcAA-‘ ratings, per the same report. OQEP described it as “a framework for potential future sukuk issuances as part of its broader funding strategy,” so setting it up isn’t an immediate financing drawdown.

What OQEP Announced

The programme is meant to expand OQEP’s financing options and strengthen its readiness to access international debt capital markets, according to Muscat Daily. Sukuk issued under it may be listed on the London Stock Exchange’s International Securities Market (ISM), subject to OQEP’s funding requirements, prevailing market conditions, and the necessary approvals. Zawya also reported the possible ISM listing. The programme doesn’t change OQEP’s approved capital expenditure, Muscat Daily said.

OQEP operates Blocks 60, 10, 65, 9, 53, and 61 in the Sultanate of Oman, per Oman Observer (July 2026). Its production reached approximately 224,000 barrels of oil equivalent per day by the end of 2025, according to the same report.

How the Sukuk Are Structured

The sukuk will be issued through OQEP Sukuk Ltd., Muscat Daily reported in October 2026. At least 55% of the proceeds will be used to purchase assets from OQEP under a purchase agreement, while no more than 45% will be allocated to acquiring a portfolio of commodities, referred to as murabaha assets. The proceeds would go to refinancing, capital expenditure, and general corporate purposes.

Ratings Context From July

The programme ratings are preliminary, and they follow issuer ratings OQEP received earlier this year. Per Oman Observer (July 11, 2026), S&P Global Ratings assigned OQEP a ‘BBB-‘ long-term global-scale rating with a stable outlook, a ‘bbb-‘ standalone credit assessment, and a ‘gcAA-‘ GCC regional-scale rating. Fitch Ratings assigned OQEP a ‘BBB-‘ long-term global-scale rating with a stable outlook, the same Oman Observer report said.

Mahmoud bin Abdullah al Hashmi, OQEP’s chief executive officer, said in July: “Obtaining investment-grade credit ratings from two prestigious international agencies represents a significant milestone in the company’s growth trajectory,” as quoted by Oman Observer (2026). That statement addressed the issuer ratings, not the sukuk programme.

Nine-Month Results and the OQGN Precedent

Muscat Daily’s report also carried OQEP’s results for the nine months ended September 30, 2026. Net profit rose 25.1% to RO296.3 million, and revenue rose 10.5% to RO700.4 million from RO633.8 million. Cost of sales declined 1% to RO434.4 million from RO438.7 million, and operating expenditure per barrel remained below $9. Other income declined 27.7% to RO30.3 million from RO41.8 million.

OQEP isn’t the only OQ subsidiary to set up a sukuk programme this month. Earlier in October, OQ Gas Networks (OQGN), another OQ subsidiary, established a $1 billion sukuk issuance programme, per Oman Observer (October 2, 2026). No sukuk had been issued and no financing raised at that point. Eng Mansoor bin Ali al Abdali, OQGN’s chief executive officer, said: “The establishment of the Programme does not, in itself, result in any change to OQGN’s approved capital expenditure or business plan.”

What Happens Next

Any OQEP sukuk will depend on the company’s funding requirements, prevailing market conditions, and the necessary approvals, per Muscat Daily (October 2026), and any sukuk issued could be listed on the London Stock Exchange’s ISM.

Frequently Asked Questions

What is the OQEP sukuk programme?

It is a $2 billion framework that OQ Exploration and Production, Oman’s upstream energy company, set up in October 2026 for possible future sukuk, issued through OQEP Sukuk Ltd., according to Muscat Daily. Setting it up doesn’t constitute an immediate financing drawdown, according to Muscat Daily.

What rating did S&P give the OQEP sukuk programme?

S&P Global Ratings assigned the programme preliminary ‘BBB-‘ and ‘gcAA-‘ ratings, per Muscat Daily (October 2026). Separately, Oman Observer reported on July 11, 2026, that S&P and Fitch had assigned OQEP ‘BBB-‘ long-term issuer ratings, which it described as investment-grade.

Has OQEP issued any sukuk under the programme yet?

No issuance has been reported. Muscat Daily (2026) said setting up the programme isn’t an immediate financing drawdown, and any sukuk depends on funding needs, market conditions, and approvals.

Where could OQEP sukuk be listed?

Sukuk under the programme may be listed on the London Stock Exchange’s International Securities Market, per Muscat Daily (October 2026). Zawya’s subtitle on the announcement noted the same ISM listing possibility.

How does the OQEP programme compare with OQ Gas Networks’?

OQEP’s programme is $2 billion, per Muscat Daily (October 2026), double the $1 billion programme OQ Gas Networks established earlier that month, according to Oman Observer (2026).