Oman, Petronas-OQEP ink offshore study pact

MUSCAT, NOV 7
Oman has taken a further step towards unlocking the hydrocarbon potential of its largely unexplored offshore territory, signing a joint study agreement with Malaysian energy giant Petronas and OQ Exploration & Production (OQEP) covering Blocks 83 and 84 off the Qurayyat coast.
The agreement builds on a landmark exploration and production-sharing pact signed with Petronas earlier this year for adjoining offshore Block 18, effectively bringing a contiguous swathe of approximately 46,162 sq km of offshore acreage within the scope of the Malaysian group's exploration interests in the Sultanate.
The latest agreement, signed by the Ministry of Energy and Minerals with Petronas subsidiary PC Oman Ventures Ltd and OQEP, provides for geological and geophysical studies to evaluate the hydrocarbon potential and commercial viability of Blocks 83 and 84, covering 10,875 sq km and 14,147 sq km respectively.
Present at the agreement signing were Mohsin al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals; Budi Nasron, Petronas Country Chairman (PC Oman Ventures Ltd); Dr Anwar al Kharusi, OQEP Chief Executive - Commercial, and others.
Significantly, findings from these studies could pave the way for future concession agreements, potentially opening new offshore prospects for exploration and development while strengthening Oman's attractiveness to international upstream investors.
Budi Nasron, Petronas Country Chairman (PC Oman Ventures Ltd), described the signing as a significant milestone in the Malaysian group's expanding relationship with Oman.
'The signing of the Joint Study Agreement for Blocks 83 and 84 marks another significant step in our growing partnership with Oman, building on the trust and collaboration established through Block 18,' he stated.
Highlighting the rapid progress achieved since Petronas established its latest upstream partnership with Oman, Nasron said the development reflected the strength of the relationship between the Ministry, OQEP and Petronas, alongside their shared ambition to responsibly unlock the Sultanate of Oman's hydrocarbon potential.
'Petronas looks forward to bringing our international experience and technical capabilities, particularly in offshore exploration and development, to this partnership and to contributing meaningfully to the Sultanate of Oman's energy aspirations,' he added.
The latest initiative follows the signing in February 2026 of an exploration and production-sharing agreement covering Block 18, a massive offshore concession extending across 21,140 sq km in the North Sohar Basin, between the Batinah coast and the Makran Accretionary Prism.
Under that agreement, PC Oman Ventures Ltd secured a 70 per cent operating interest, with OQEP subsidiary Batinah Offshore LLC holding the remaining 30 per cent non-operating stake.
Block 18 encompasses water depths ranging from 30 to 3,000 metres. Previous exploration campaigns included approximately 10,000 km of 2D seismic surveys, 2,048 sq km of 3D seismic acquisition and three exploratory wells, which identified multiple geological plays but failed to establish commercially viable discoveries. The concession was previously held by India's Reliance Industries, which withdrew in 2011 following an unsuccessful exploration campaign.
Together, the three blocks represent a potentially significant offshore exploration opportunity for Oman, combining previously investigated geological prospects with extensive acreage awaiting further assessment.