MUSCAT, SEPT 10
Oman has formally ratified a new 50:50 Omani-Turkish partnership to develop and explore the strategically located offshore Block 80 concession off Musandam.
Royal Decree 77/2026, issued by His Majesty Sultan Haitham bin Tarik on September 3, approves the Exploration and Production Concession Agreement (EPSA) signed in June between the Omani government, OQ Exploration and Production – Musandam Offshore LLC and Turkish Petroleum Overseas Company Limited (TPOC).
The decree gives statutory force to an upstream partnership that combines established oil and gas production with a sizeable new exploration programme across approximately 5,737 sq km of offshore acreage near the Strait of Hormuz.
Under the agreement, OQEP Musandam Offshore, a wholly owned subsidiary of OQ Exploration and Production (OQEP), holds a 50 per cent participating interest and retains operatorship. TPOC, the international subsidiary of Türkiye's state-owned Türkiye Petrolleri (TPAO), holds the remaining 50 per cent.
Significantly, Block 80 incorporates the producing Bukha and West Bukha oil and gas fields, formerly part of the much smaller Block 8 concession, alongside extensive surrounding exploration acreage.
The two fields have a long production history. When the former Block 8 concession expired in 2019, previous operator DNO reported cumulative production of around 35 million barrels of oil and 285 billion cubic feet of gas. OQEP subsequently assumed operatorship.
The new concession seeks to leverage that production history and accumulated geological knowledge to unlock additional hydrocarbon resources around the existing fields.
During the first four-year exploration phase, OQEP and TPOC are committed to acquiring 500 sq km of 3D seismic data, drilling two exploration wells and one appraisal well, with minimum expenditure of $60 million.
A second four-year phase provides for another exploration or appraisal well and at least $30 million of additional expenditure, taking minimum committed exploration investment to $90 million.
Block 80 also benefits from established Musandam infrastructure. Existing production is transported to the Musandam Gas Plant at Bukha for processing, with dry gas supplying the nearby Musandam Independent Power Plant and other products serving domestic and regional markets.
The June transaction additionally included a Joint Operating Agreement between OQEP and TPOC and a Gas Sale Agreement with Integrated Gas Company, providing an offtake framework for Block 80 gas.
Beyond its upstream significance, the concession marks an expansion of Turkish participation in Oman’s energy sector. It enables OQEP to retain operational control and local expertise while sharing exploration expenditure and geological risk with Türkiye’s national oil company.
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