Petronas and OQEP widen Oman offshore hunt

Oman has deepened its push into untapped offshore acreage, signing a joint study agreement with Malaysia's Petronas and OQ Exploration & Production (OQEP) covering Blocks 83 and 84.

The accord, concluded between the Ministry of Energy and Minerals, Petronas subsidiary PC Oman Ventures Ltd and OQEP, provides for geological and geophysical work to assess the hydrocarbon potential and commercial viability of the two concessions. Block 83 covers 10,875 square km and Block 84 a further 14,147 square km, according to the Oman Observer.

The deal extends a production-sharing agreement signed with Petronas in February 2026 for the adjoining Block 18, bringing a contiguous stretch of roughly 46,162 square km of offshore acreage within the Malaysian company's remit in the sultanate. Findings from the new studies could underpin future concession agreements, the ministry said.

Present at the signing were Mohsin al Hadhrami, under-secretary at the Ministry of Energy and Minerals; Budi Nasron, Petronas country chairman at PC Oman Ventures Ltd; and Dr Anwar al Kharusi, CEO, commercial at OQEP.

“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,” Nasron said.

He added that 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.”

Block 18, a 21,140 square km concession in the North Sohar Basin between the Batinah coast and the Makran Accretionary Prism, is held 70% by PC Oman Ventures Ltd as operator, with OQEP subsidiary Batinah Offshore LLC on the remaining 30%. Water depths range from 30 metres to 3,000 metres.

Earlier exploration on the block included around 10,000 km of 2D seismic, 2,048 square km of 3D seismic and three wildcats that identified multiple plays but no commercial discoveries. India's Reliance Industries previously held the acreage, relinquishing it in 2011 after an unsuccessful campaign.

Together, the three blocks offer Petronas and OQEP a sizeable frontier position combining previously tested geological concepts with large tracts still to be evaluated, at a time when Muscat is actively courting international upstream investors to arrest a gradual decline in mature onshore output.