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.

Under the terms of the agreement, Petronas will assume operatorship with a 70 per cent participating interest, while OQ Exploration and Production will hold the remaining 30 per cent stake in the concession rights, reported ONA.

The agreement includes an initial exploration period of four years, which may be extended, with the possibility of declaring commerciality and granting a production concession for a period of up to thirty years.

Offshore Block (18) is located in the Sea of Oman and covers an area exceeding 21,000 square kilometers.

It is considered one of the offshore areas with diverse geological potential, despite the technical challenges associated with exploration and drilling in deep waters, as no confirmed discoveries have previously been made in the block.

The agreement was signed on behalf of the Government of Oman by Salim Al Aufi, Minister of Energy and Minerals.

It was signed on behalf of OQ Exploration and Production by Mahmoud Al Hashmi, Acting CEO of OQ Exploration and Production.

On behalf of PC Oman Ventures, a subsidiary of Malaysia’s Petronas, the agreement was signed by Muhammad Abdul Rahman, Vice President of International Assets at Petronas, in its capacity as the operator of the concession area.

Al Aufi affirmed that exploration activities constitute a fundamental pillar in the optimal utilization of Oman’s natural resources. He noted that expanding exploration programs aims to increase reserves and support production levels, thereby directly contributing to sustainable development at both the economic and social levels, and further strengthening the oil and gas sector’s role in supporting the national economy.

He added that the agreement reflects the attractiveness of Oman’s new investment incentive framework and its ability to attract leading international companies, such as Petronas, to invest in offshore areas. He emphasized that strategic partnerships between national companies and international expertise play a vital role in transferring advanced technologies and developing Omani talent in this key sector. The agreement is also expected to mark the beginning of a broader partnership with Petronas in Oman.

He further stated that awarding the concession for Block (18) represents a strategic step aligned with the objectives of Oman Vision 2040, which seeks to ensure the sustainability of the energy sector and maximize the added value of natural resources. He expressed his hope that the drilling operations and seismic surveys to be carried out in the area will lead to the discovery of new hydrocarbon potential, thereby enhancing national reserves and strengthening Oman’s position on the global energy map.

He also noted that the investing companies will implement a comprehensive work program that includes conducting technical studies, with the possibility of adding geophysical surveys in deepwater areas, as well as drilling exploratory wells to fully assess the concession’s potential. He wished the concession partners success in executing exploration activities in Block (18) and in continuing the achievements realized in several offshore concession areas in recent years.

Dr Anwar Al Kharousi, Chief Commercial Officer of OQ Exploration and Production, stated that the signing of the concession agreement for Block (18) represents a significant addition to the company’s offshore portfolio and strengthens its presence in exploration and production activities. He affirmed that the partnership with Petronas builds on the strategic cooperation between the two parties and supports the transfer of expertise and technical knowledge exchange.

He further explained that OQ Exploration and Production is the largest specialized exploration and production company in Oman, with an average daily production of approximately 224,000 barrels of oil equivalent. The company continues to play a key role in supporting the sustainability of the sector and maximizing the added value of national resources.

Muhammad Abdul Rahman, Vice President of International Assets at Petronas, affirmed that the signing of the concession agreement for Block (18) reflects the company’s commitment to expanding its exploration portfolio in promising areas. He noted that the agreement builds on the Memorandum of Understanding signed with OQ Exploration and Production during the third quarter of 2025.

He added that Petronas will leverage its advanced offshore exploration expertise and modern deepwater technologies, in collaboration with its partners, to assess the hydrocarbon potential of the block, support long-term energy security, and further strengthen its investment presence in Oman.

The investing companies are expected to implement a comprehensive work programme that includes conducting geophysical surveys and technical studies, in addition to drilling exploratory wells to assess the hydrocarbon potential of the area, thereby contributing to strengthening Oman’s position on the regional and global energy map.