Muscat – Oman, represented by the Ministry of Energy and Minerals, on Thursday signed a concession agreement with PC Oman Ventures Ltd, a wholly owned subsidiary of Malaysia’s Petronas, and OQ Exploration and Production (OQEP) for the exploration of oil and gas in offshore Block 18.

The agreement forms part of Oman’s ongoing efforts to enhance exploration and production activities and expand the sultanate’s hydrocarbon resource base.

The concession agreement was signed by H E Salim Nasser al Aufi, Minister of Energy and Minerals; Muhammad Redhani Abdul Rahman, Vice President of International Assets at Petronas, on behalf of PC Oman Ventures Ltd; and Mahmoud Abdullah al Hashmi, Acting Chief Executive Officer of OQEP.

Under the terms of the agreement, Petronas, through its subsidiary PC Oman Ventures Ltd, will assume operatorship of Block 18 with a 70% participating interest, while OQEP will hold the remaining 30% stake in the concession.

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 up to 30 years.

Block 18 is a large offshore exploration area located in north-east Oman, spanning more than 21,000 sqkm and offering significant frontier exploration potential across diverse geological settings, from shallow to ultra-deep waters.

In a statement to Oman News Agency, H E Aufi said exploration activities constitute a fundamental pillar in the optimal utilisation of Oman’s natural resources. He noted that expanding exploration programmes aims to increase reserves and support production levels, thereby contributing directly to sustainable economic and social development, 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 emphasised that strategic partnerships between national companies and international players play a vital role in transferring advanced technologies and developing Omani talent in this key sector.

H E Aufi expressed hope that drilling operations and seismic surveys to be carried out in the Block 18 area would lead to the discovery of new hydrocarbon resources, enhancing national reserves and strengthening the sultanate’s position on the global energy map.

Rahman said the signing of the Block 18 concession agreement reflects Petronas’ commitment to expanding its exploration portfolio in promising regions. He added that Petronas will leverage its offshore exploration expertise and advanced deepwater technologies, in collaboration with its partners, to assess the hydrocarbon potential of the block.

Dr Anwar Sulaiman al Kharousi, Chief Commercial Officer of OQEP, said the agreement represents a significant addition to the company’s offshore portfolio and strengthens its presence in exploration and production activities. He added that the partnership with Petronas builds on strategic cooperation between the two parties and supports the transfer of expertise and technical knowledge.

The companies are expected to implement a comprehensive work programme that includes geophysical surveys, technical studies and the drilling of exploratory wells to assess the hydrocarbon potential of the area, further reinforcing the sultanate’s position on the regional and global energy map.

PC Oman Ventures Ltd has been active in the sultanate since 2018 and currently holds a participating interest in Block 61.