OQEP, Turkish Petroleum secure Block 80 concession

25/06/2026 10:25 AST

Oman's Ministry of Energy and Minerals on Wednesday signed an Exploration and Production Sharing Agreement (EPSA) for offshore Block 80 with OQ Exploration and Production (OQEP) - Musandam Offshore and Turkish Petroleum Overseas Company (TPOC).

The new concession agreement forms part of the government's efforts to develop and utilise energy resources efficiently and innovatively, while maximising the value of the country's hydrocarbon resources to support economic growth and advance the objectives of Oman Vision 2040.

The agreement was signed by H E Salim bin Nasser Al Aufi, Minister of Energy and Minerals; Mahmoud Al Hashmi, CEO of OQEP - Musandam Offshore; and Cagri Sirin, Head of International Projects at TPOC.

Located in Musandam Governorate, Block 80 covers an area of approximately 5,737 sq km. The block includes the producing Bukha and West Bukha fields, making it a strategically significant asset within Oman's oil and gas sector.

Under the terms of the agreement, OQEP will operate the block with a 50% participating interest, while TPOC will hold the remaining 50%. The partnership reflects continued international confidence in Oman's energy sector and its ability to attract specialised expertise and investment.

The exploration programme will be carried out in two phases. The first phase, spanning four years, includes the acquisition of 3D seismic data over an area of 500 sqkm, as well as the drilling of two exploration wells and one appraisal well. Mandatory investment during this phase is estimated at no less than US$60mn.

The second phase, also lasting four years, will involve the drilling of an additional exploration or appraisal well, depending on the results of the initial phase, with mandatory investment estimated at no less than US$30mn.

H E Al Aufi said that the signing of the concession agreement for Block 80 marks a new step in the development of Oman's promising offshore acreage. "It reflects the growing confidence of international companies specialised in exploration and production in the investment environment of the oil and gas sector."

He noted that the block is located within a strategically important maritime zone with significant geological potential. The area benefits from extensive data and expertise accumulated from neighbouring offshore concessions, particularly in Musandam Governorate, which is home to commercially viable fields, most notably Bukha and West Bukha.

According to the minister, these factors enhance the prospects for new discoveries that could support the growth of national hydrocarbon reserves and contribute to the long-term sustainability of oil and gas production.

H E Al Aufi added that the ministry is also focused on deploying advanced technologies in exploration, appraisal and field development, including state-of-the-art seismic surveys and offshore drilling techniques, to improve operational efficiency and increase the likelihood of success in offshore areas.

Al Hashmi said the signing of the EPSA for Block 80 underscores OQEP's commitment to leveraging its extensive expertise to capture new growth opportunities and strengthen its contribution to Oman's exploration and production sector.

He added that the inclusion of offshore Block 80 in OQEP's portfolio - as the fifth concession block operated by the company in partnership with an international operator - demonstrates the company's strong operational capabilities and growing role in the development of the Sultanate's energy sector.

Muscat Daily