Muscat: The Ministry of Energy and Minerals signed a concession agreement today for Block 80 with OQ Exploration and Production (OQEP) - Musandam Offshore and Turkish Petroleum Overseas Company Limited (TPOC). This agreement is part of the Ministry's efforts to develop and utilize energy sources effectively, maximizing benefits from hydrocarbon resources to support economic growth in line with Oman Vision 2040.
According to Oman News Agency, the agreement was signed by Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, on behalf of the Government of the Sultanate of Oman. Mahmoud Salim Al Hashmi, CEO of OQEP - Musandam Offshore, and Cagri Sirin, Head of International Projects at Turkish Petroleum Overseas Company Limited, signed on behalf of their respective organizations.
Block 80, located in the Musandam Governorate, covers an area of approximately 5,737 square kilometers. It includes the producing Bukha and West Bukha fields, making it a strategically important area in the exploration and production sector. Under the agreement, OQEP will operate the block with a 50 percent stake, while Turkish Petroleum holds the remaining 50 percent. This reflects the confidence in Oman's oil and gas sector and its ability to attract international partnerships and investments.
The exploration program for Block 80 includes two main phases. The first phase, lasting four years, involves conducting 3D seismic surveys over 500 square kilometers, drilling two exploration wells, and one appraisal well, with mandatory investments of no less than USD 60 million. The second phase, also four years long, includes drilling an additional exploration or appraisal well based on the first phase results, with mandatory investments of no less than USD 30 million.
Eng. Salim Nasser Al Aufi emphasized that the agreement for Block 80 represents a step forward in developing offshore areas in Oman, reflecting the growing confidence of international companies in Oman's investment environment. He noted that the block lies within a maritime zone of strategic importance with promising geological potential, enhancing the chances of new discoveries that support national reserves and production sustainability.
The Minister added that the Ministry aims to develop energy resources efficiently and innovatively by building strategic partnerships and employing the latest technologies in exploration and development. Offshore exploration projects are crucial for boosting investment in the oil and gas sector and attracting international expertise, providing opportunities for knowledge transfer and developing Omani competencies.
Eng. Mahmoud Abdullah Al Hashmi stated that the agreement for Block 80 confirms OQEP's commitment to capturing new growth opportunities and enhancing its contribution to the sector in Oman. He added that the addition of Block 80 to the company's portfolio as the fifth concession block operated by OQEP, in cooperation with a global partner, demonstrates the company's operational efficiency.