Oman’s Ministry of Energy and Minerals has signed a concession agreement for Offshore Block (18), as part of its ongoing efforts to enhance exploration and production activities and expand the hydrocarbon resource base in Oman.
The agreement was signed by Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, for the Government of Oman; Mahmoud Abdullah Al Hashmi, Acting CEO of OQ Exploration and Production; and Muhammad Redhani Abdul Rahman, Vice President of International Assets at PETRONAS, in its capacity as operator of the concession area.
Ownership and exploration terms
Under the terms of the agreement, PETRONAS will assume operatorship with a 70 percent participating interest, while OQ Exploration and Production will hold the remaining 30 percent stake.
The concession pact includes an initial four-year exploration period, which may be extended, and allows for a production concession of up to thirty years if commerciality is declared.
Offshore Block 18 covers more than 21,000 square kilometers in the Sea of Oman. The block is considered geologically promising, despite the technical challenges of deepwater exploration and drilling, and no confirmed discoveries have previously been made.
Strategic significance and Oman Vision 2040
The investing companies will implement a comprehensive work program, including technical studies, geophysical surveys in deepwater areas, and exploratory drilling to fully assess the block’s potential.
Eng. Salim Nasser Al Aufi Minister of Energy and Minerals Govt of Oman
“Expanding exploration programs aims to increase reserves and support production levels, directly contributing to sustainable economic and social development and strengthening the oil and gas sector’s role in supporting the national economy. Awarding the concession for Block 18 represents a strategic step aligned with Oman Vision 2040, which seeks to ensure energy sector sustainability and maximize the added value of natural resources. We hope that seismic surveys and drilling operations will uncover new hydrocarbon potential, enhance national reserves, and strengthen Oman’s position on the global energy map.”
The Minister highlighted that the agreement reflects the attractiveness of Oman’s new investment incentive framework and its ability to attract leading international companies, such as PETRONAS. The agreement is expected to mark the beginning of a broader partnership with PETRONAS in Oman.
Dr. Anwar Sulaiman Al Kharousi, Chief Commercial Officer of OQ Exploration and Production, stated that, “Our partnership with PETRONAS builds on strategic cooperation and supports expertise transfer and technical knowledge exchange.”
Muhammad Redhani Abdul Rahman, Vice President of International Assets at PETRONAS, noted that, “PETRONAS will leverage advanced offshore exploration expertise and modern deepwater technologies, in collaboration with partners, to assess the hydrocarbon potential of the block, support long-term energy security, and further strengthen its investment presence in Oman.”
The work program is expected to contribute to Oman’s regional and global energy positioning, strengthen national reserves, and advance the technical and operational capabilities of the Sultanate’s hydrocarbon sector.
