Zawya: MUSCAT: The Ministry of Energy and Minerals, on behalf of the Government of the Sultanate of Oman, has signed a concession agreement for the offshore Block 18, as part of its ongoing efforts to enhance exploration and production activities and expand the hydrocarbon resource base in Oman.

Representing the respective parties at the agreement signing were: Eng Salim Nasser Al Aufi, Minister of Energy and Minerals; Mahmoud bin Abdullah Al Hashmi, Acting CEO of OQ Exploration and Production (OQEP); and Muhammad Redhani Abdul Rahman, Vice President of International Assets at Petronas, on behalf of its subsidiary, PC Oman Ventures Limited.

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. 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 30 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.

Eng Salim Nasser Al Aufi, Minister of Energy and Minerals, 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 also noted that the investing companies will implement a comprehensive work programme 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.

For his part, Dr Anwar Sulaiman 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. OQ Exploration and Production is the largest specialized exploration and production company in the Sultanate, with an average daily production of approximately 224,000 barrels of oil equivalent.

Muhammad Redhani Abdul Rahman, Vice President of International Assets at Petronas said the agreement builds on the Memorandum of Understanding signed with OQ Exploration and Production during Q3 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 the Sultanate of Oman.