OQ Exploration and Production (OQEP) expects a sharp increase in its revenues this quarter. “The hike that we’ve seen in oil prices will have some [revenue] reflection, hopefully, in the second quarter of this year,” CFO Khalid al-Qassabi told investors during a 25 May earnings call.
The main driver of higher revenues will be the premium that Oman’s oil has fetched as a result of the shortage of similar crude grades due to the closure of the Strait of Hormuz. The official selling price (OSP) for Oman Crude surged by 57% to $98.98/B for Q2 loadings. With Omani crude exports unaffected by the conflict, it is the only regional state able to capitalize fully on the price gains, with OQEP and all other producers in Oman benefiting accordingly. (CONTINUED – 926 WORDS)
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