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Upstream
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The world remains heavily reliant on oil and gas as megatrends continue to push for a wider mix of energy sources.
Innovation is key as the oil and gas sector will continue to supply 55% of our global energy needs through 2040.
Upstream is the industry term used to describe the activities segment specialising in the exploration and extraction of oil and natural gas. These operations comprise identifying deposits, drilling wells, and recovering raw materials from underground via various conventional and unconventional methods.
OQ has proven capabilities to explore and operate conventional and tight oil and gas onshore fields. Tight gas refers to natural gas trapped within very tight rock formations, like limestone or sandstone which can be recovered by applying hydraulic fracturing. Our company's hydrocarbon mix pivoted towards gas (over 40%), driven by development in tight gas reservoirs.
Our position as a global integrated energy company offers us better possibilities for adapting and testing new technological solutions for safer and sustainable oil and gas exploration and extraction as part of our upstream business unit.
Operations & Presence
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OQ's upstream business principally comprises OQ Exploration & Production focusing on operated assets, OQ Joint Venture where OQ acquired participating interest ranging from 20% to 45% with major oil & gas companies in and outside Oman and finally OQ Gas Network which owns and operates all of Oman's gas transportation comprising 4,000 km of gas pipelines.
OQ operated blocks contribute 17% of OQ's total upstream reserves while the remaining is coming from OQ Joint venture with local operating partners including Shell, Eni, Total in its non-operated assets, Medco, Petrogas, Occidental and BP. Our partnership with BP in Block 61 is the major gas supplier to the Sultanate with a capacity of over 1.5 billion cubic feet of gas every day. In addition, OQ Joint Venture has participating interest with international operating partner in Dunga field in Kazakhstan.
OQ is the exclusive operator and owner of materially all of Oman's gas transportation system since 2018. Transporting natural gas to 59 connected parties in Oman through 4,000 km high pressure gas pipelines and transported 37.11bn scm of gas in Oman.
Quality
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OQ defines and executes on quality metrics by finding new and better ways to increase efficiency. Whether through focusing on sustainability, energy-saving technology, and planet-friendly practice, we aim to be the best at what we do.
The era of digitisation represents an opportunity for OQ to increase the quality, efficiency and overall yield of our oil and gas exploration and production operations across the value chain. Market pressures are incentivising our traditional industry to take a step back from big production and focus on data collection and analysis to achieve better margins. Digitalisation is ushering new and innovative upstream technology.
Operating upstream facilities reliably and cost-effectively also means focusing on managing emissions, ensure the efficiency of drilling wells, managing reservoirs, and deploying the latest technologies to optimise overall exploration and production efforts.
Growth
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Upstream significantly contributes to OQ's strategic long-term shift towards energy transition, providing clean gas for increased electrification and the necessary cashflow for future transitions. Focusing on local Omani petroleum resources, OQ shall strive to continue to grow its reserves base in Oman and aspires to significantly increase production levels in the coming 10 years with a balanced mix of oil and gas in its portfolio.
Within OQ’s integrated businesses, Upstream shall work in synergy with Downstream sustaining part of the feed gas required for its downstream industries - positioning ourselves as a major gas player in the Sultanate, producing gas at an advantageous cost to the Group.
Success depends on the ability to continue building operating capability, finding new reserves from our ongoing exploratory initiatives, excelling in our cost efficiencies, and growing our asset values from both operated and non-operated producing ventures.
Upstream shall further expand internationally through carefully selected opportunistic acquisitions, leveraging on our excelling partners. Our aim is to diversify a small part of our production portfolio, taking non-operated positions with our alliances to mitigate future risks, and targeting large efficient resources from the global market.
Safety
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OQ's Global Operations Organisation comprises Upstream Production Assets, Midstream Transportation and Processing Facilities where we strive to deliver safe, reliable, and compliant execution of business.
In Upstream, we aim to carry out our activities by employing safe work practices in order to prevent accidents, harm to people, the environment and property. We ensure that our business HSE (Health, Safety, and Environment) risks are managed in a structured manner by fostering an environment where the leadership proactively supports measures to monitor and reduce these risks by providing employees with the appropriate resources, hence, minimising the occurrence and impact of accidents by inculcating a continual risk reduction culture.
OQ Upstream operating strategy fosters safe delivery of the production targets and at the same time enables growth thorough HSE and operational excellence.