2026 Oman Bid Round: A compelling and diverse onshore investment opportunity

Five upstream oil and gas blocks, spanning a total area of around 48,000 square kilometres, have been offered for local and international investment under the 2026 Oman Licensing Round. Onshore Blocks 12 (Non-Associated Gas), 16, 45, 42 and 55 present a “compelling and diverse onshore investment portfolio”, said Oman’s Ministry of Energy and Minerals in an overview of the acreage opened for bidding.
“These blocks span multiple proven petroleum systems and geological settings, offering a balanced mix of near-field exploration, appraisal upside and frontier potential”, the Ministry noted.
Significantly, four of the licences are the result of the partitioning of two legacy blocks — a move described by the Ministry as a “strategic division” to transition the original acreage into a more “dynamic dual-block configuration”. This subdivision has been applied to two legacy licences: Block 12, which has been split into Block 12 and the newly designated Block 16; and Block 42, which has been divided into Block 42 and the newly designated Block 45. In both cases, the move is intended to catalyse exploration and maximise resource recovery, while preserving the overall exploration value of the province, according to the Ministry.
Herewith is a brief overview of each block open to tender, outlining ownership and exploration history, discoveries, prospects and other key characteristics:
BLOCK 12
Legacy Block 12, originally spanning approximately 9,550 km², has long been recognised as a “cornerstone” of central Oman’s onshore exploration strategy.
“Strategically positioned south of the Greater Barik area and immediately north of Block 6, the concession sits within one of the Sultanate of Oman’s most established hydrocarbon provinces. Occupying the broad desert plains of the interior Arabian Plate, Block 12 has historically offered unrivalled logistical accessibility and seamless integration with Oman’s core energy infrastructure, including major trunk pipelines, processing facilities and producing fields across central Oman”, the Ministry explained.
A new chapter in its history was added recently when the Ministry decided to divide the original acreage into separate blocks — a transition to Blocks 12 and 16 that preserves the intrinsic value of the acreage while offering more focused opportunities. Both blocks remain adjacent to major gas developments in Blocks 10 and 11; and their proximity to these progressing export projects materially enhances the commercial relevance and monetisation potential of any future discovery. High-quality seismic coverage has also been maintained across both the refined Block 12 and the new Block 16.
Legacy Block 12 was originally part of Block 6, long operated by Petroleum Development Oman, where several Permian oil discoveries — including Zauliyah, Hazar, Hasirah, Asfoor and Anzuz — confirmed the presence of active petroleum systems within the area.
In 2020, a non-associated gas (NAG) EPSA was signed with a consortium led by TotalEnergies (operator) and PTTEP, which undertook seismic surveys, detailed geological studies and drilled two exploration wells in 2024. Although no commercial hydrocarbons were found, the campaign significantly improved subsurface understanding and refined geological models.
The concession was relinquished to the Government in 2025 at the end of the EPSA term, with the newly acquired data enhancing the overall geological framework and helping to better define the remaining exploration potential.
Following its partitioning, the new Block 12 now covers approximately 5,050 km². According to the Ministry, exploration is focused on multiple potential sources of oil and gas, with the main challenge being whether these resources have effectively accumulated in viable reservoirs — although evidence from nearby areas suggests this remains a realistic possibility.
BLOCK 16
Block 16 is an onshore non-associated gas (NAG) concession in central Oman, covering about 4,496 km². Strategically located between the Greater Barik area and Block 6, it lies within one of the country’s most established hydrocarbon provinces, with strong logistical access and proximity to key infrastructure such as pipelines, processing facilities and producing fields. Its closeness to major gas developments in Blocks 10 and 11 further enhances the commercial potential of any future discoveries.
Geological and geophysical studies indicate that the block sits within a mature petroleum province with multiple active hydrocarbon systems. While recent drilling has not yielded commercial results, Block 16 remains underexplored at depth and retains significant upside, particularly for deeper gas prospects.
BLOCK 42
Block 42 is an onshore exploration concession in northeastern Oman, created from the subdivision of the original Block 42 and covering around 25,590 km². It spans a varied landscape — from the Al Hajar Mountains foothills to the Rimal Al Sharqiya — and is strategically located near the Ghaba Salt Basin, one of the country’s most productive hydrocarbon regions, while also offering exposure to additional prospective areas beyond this core zone.
The block was split as part of the 2026 licensing round to sharpen exploration focus while retaining overall value. It also lies adjacent to Oxy’s Block 51, where multiple untested prospects have been identified, with geological trends extending into Block 42 — suggesting potential continuity of resources across the boundary.
“As a standalone concession, Block 42 represents a technically coherent structural exploration play with identifiable petroleum system elements, regional analog support and upside linked to adjacent proven trends”, the Ministry stated.
BLOCK 45
Block 45, spanning 5,483 km², forms the southern part of the former Block 42 and is aligned with one of Oman’s key oil and gas-producing regions, with similarities to nearby producing areas supporting its potential.
Exploration was previously carried out through a partnership between the Omani state (via OOCEP, now OQEP) and Shell, which became the operator in 2017. The partners assessed the block’s potential through studies and surveys but did not make any commercial discoveries. Shell later exited the concession in 2025 and the block was returned to the government in early 2026 for future re-offering.
While a limited number of wells have been drilled without success, the block’s proximity to active producing fields suggests that resources may still be present, though not yet confirmed. Nearby acreage operated by Oxy also contains several untested prospects, pointing to continued exploration potential with improved data and renewed efforts.
BLOCK 55
Block 55 is an onshore concession in Al Wusta Governorate covering about 7,564 km², located near one of Oman’s most productive oil and gas regions. While parts of the block have seen limited exploration, its western side is considered more promising due to its proximity to proven producing areas and major discoveries, including Mukhaizna.
Originally part of Block 6, the area has undergone relatively light exploration, with a limited number of wells drilled and older survey data collected. More recent activity by operators such as Petrogas and Shell has focused on reassessing its potential, although hydrocarbon-focused drilling remains limited.
Importantly, Block 55 is close to established infrastructure — including pipelines, processing facilities and storage terminals — which enhances its commercial appeal by potentially lowering development costs for any future discoveries.