Oman Ministry of Energy and Minerals signed a concession agreement for Block 80 with OQ Exploration and Production (OQEP) - Musandam Offshore and Turkish Petroleum Overseas Company Limited (TPOC).

This comes within the framework of the Ministry's efforts aimed at developing and utilising energy sources with high efficiency and innovation, and maximising the benefit from hydrocarbon resources to support economic growth and boost the goals of Oman Vision 2040.

Block 80 is located in Musandam Governorate, spanning an area of approximately 5,737 square kilometers.

It includes the producing Bukha and West Bukha fields, making it a strategically important area in the exploration and production sector.

Under the agreement, OQEP will operate the block with a 50 per cent stake, while Turkish Petroleum holds the remaining 50 per cent, reflecting the confidence in the Sultanate of Oman's oil and gas sector and its ability to attract specialised international partnerships and investments.

The exploration program for the block includes two main phases.

The first phase, spanning four years, includes conducting 3D seismic surveys over 500 square kilometers and drilling two exploration wells and one appraisal well, with mandatory estimated investments of no less than $60 million.

The second phase, also spanning four years, includes drilling an additional exploration or appraisal well based on the results of the first phase, with mandatory estimated investments of no less than $30 million.

Salim Nasser Al Aufi, Minister of Energy and Minerals, emphasised that signing the concession agreement for Block 80 represents a new step in the development of promising offshore areas in the Sultanate of Oman. It reflects the growing confidence of international companies specialised in exploration and production in the investment environment of the oil and gas sector.

He pointed out that the block lies within a maritime zone of strategic importance and promising geological potential, benefiting from data and expertise accumulated in neighbouring offshore areas, particularly in Musandam Governorate, which contains fields that have proven their economic viability, most notably the Bukha and West Bukha fields. This enhances the chances of making new discoveries that contribute to supporting national reserves and production sustainability in the long term.

He added that the Ministry continues to implement its vision to develop and utilise energy resources efficiently and innovatively by building strategic partnerships with national and international companies and employing the latest technologies in exploration, evaluation, and development, including advanced seismic surveys and offshore drilling techniques, which contribute to raising operational efficiency and enhancing success chances in offshore areas.

The Minister of Energy and Minerals noted that offshore exploration projects represent an important tributary for boosting investment in the oil and gas sector and contribute to attracting specialised international investments and expertise. The opportunities they provide for transferring knowledge and modern technologies and developing national competencies enhance the capabilities of Omani cadres in managing and operating advanced offshore projects and support the local content targets for the sector.

For his part, Mahmoud Al Hashmi, CEO of OQ Exploration and Production - Musandam Offshore, explained that signing the exploration and production sharing agreement for Block 80 confirms OQEP's commitment to employing its extensive experience to capture new growth opportunities and enhance its contribution to the exploration and production sector in the Sultanate of Oman. He added that the addition of offshore Block 80 to the company's asset portfolio, as the fifth concession block operated by OQEP in cooperation with a global partner, is proof of the company's high operational efficiency. -OGN/TradeArabia News Service